The Swedish car manufacturer Volvo has booked a considerably lower profit in the third quarter. The results are negatively affected, among other things, by the the higher import tariffs as a result of the trade war between the United States and China.
Operating profit (EBIT) halved in the last reporting period to 1.8 billion Swedish kron, about 173.4 million euros. The net result fell by more than 50 percent to 1.1 billion krone.
Apart from the trade barriers imposed by the US and China, profits also decreased due to increased spending on the launch of new products. For example, Volvo, like many other companies, puts a lot of money into technology for autonomous cars.
Volvo, which is owned by the Chinese company Geely, increased its turnover. Yields rose to 56.8 billion Swedish krona on an annual basis. The group sold 154,914 cars in the past reporting period. That was 135,831 more than a year earlier.
Leah Kunze just graduated MBA and is proud of it. She is interested in automotive industry and innovations. She well be glad to receive a mail to [email protected]