The owner of Volvo Cars, China Geely, reported that during 10 months of 2018 Volvo sold 526,062 vehicles worldwide — a 14% increase over the same period in 2017.
Volvo chief executive is expecting a growth in 2019 but trade war between the USA and China will keep margins under continued pressure.
said its operating profit increased by 0.9 percent to $1.5 billion although its
margin fell to 5.6 percent from 6.7 percent.
In the summer, US President Donald Trump set the tariff for cars imported from China at the level of 27.5%. Chinese leader Xi Jinping did not remain in debt and raised fees on American cars to 40%. Volvo, which opened its first American plant in South Carolina in June, found itself between two fires. Swedes had to drastically change plans and lose profits.
Volvo was succeeding with Geely, with 5 years of high sales, due to steady demand for its high class automobiles.
Currently Swedish based company is reequipping its plants to reduce the negative influence of trade war.