Sweden’s top vehicle brand Volvo Cars has declared a 27.7 percent increase in their 2017 operating profit setting a new record for itself, earning SEK14.1 billion, which is equivalent to USD1.746 billion compared to 2016’s profit of SEK11.0 billion, equaling USD1.367 billion, by selling 571,577 vehicles worldwide.
Volvo Cars has also recorded a bump in net revenue for the period, which increased 16.6 percent to SEK210.9 billion (U.S.$ 26.18 billion) in contrast to SEK180.9 billion (the U.S.$ 22.46 billion) in 2016, whereas the operating income margin ameliorated from 6.1 percent in 2016 to 6.7 percent in 2017.
The Swedish automaker has upgraded and improved its management of finances and operations recently, thus has reinvigorated its approach toward its future goals and the next growth phase.
The sales grew 7.0 percent worldwide in 2017, justified by a whopping 25.8 percent increase in China alone, which is Volvo’s biggest single market.
The Middle Eastern market showed a 12% decline in sales across all automakers in the premium section, however, Volvo Cars still remained popular with 1,196 vehicles sold in the region.
The XC60 was the best-selling model followed by the XC90. Volvo recorded these two models sharing 63% of Volvo’s total sales. The XC60 will prove to be the company’s main flagship in the SUV segment, while the S90 saloon and V90 will usher Volvo’s cause further in the D segment.
Europe and the Asia-Pacific region favored the XC40 and with the release of this vehicle in the Middle East region, sales will surely skyrocket further, as the region is considered to have a high demand for premium compact and premium SUVs, “The XC40, our first ever small premium SUV completes our global SUV line-up and takes the brand into a new, exciting direction. It will broaden our brand’s appeal to include a completely new set of potential customers, especially within the Middle East”, remarked Jesus Fernandez de Mesa, Managing Director of Importers EMEA.
“Our business has transformed completely since 2010 and we are now gearing up for a phase of global, sustainable growth,” said Håkan Samuelsson, president, and chief executive. “We are investing in all parts of our organization and have laid out clear strategies around electrification, autonomous drive, and connectivity.”