Volvo promised to be profitable at the end of the year despite hick-ups caused by last ownerSaturday, 17 December 2011
Volvo car Corporation may have recorded some Losses in the third quarter. But the fourth is expected to see the company in black numbers. For the whole year, the CEO Stefan Jacoby has promised profit.
However, margins are being squeezed by heavy investment. "We are taking again what the previous owner did not do", said Stefan Jacoby, in a occasion organised by the Swedish business daily, Dagens Industri.
Volvo CEO, Stefan Jacoby was working with the news that Volvo Cars will be introducing a new V40 next year. But he also took the opportunity to give the former owner Ford a boot:
"We will return to profitability in the fourth quarter and there will be profit for the whole year. We were vulnerable temporary but that's because we had to do what the previous owner did not do. "
AdvertisementStefan Jacoby refers inter alia to the development of the new platform that will provide a new XC90 in 2014. But also to invest heavily in China, where Volvo will open a new factory in 2013 and where another one is underway.
Stefan Jacoby recipe for success is that Volvo remains with the upmarket cars, and be very serious about better quality and to put more effort to every detail.
When asked what it's like to work with Volvo owned by Geely and with many nationalities in the management, the Volvo chief said
"You do not need to be a Swedes to preserve that which is Swedish. What you need are good car people that can develop Volvo's strengths. "
Of Chairman Li Shufu, said Stefan Jacoby:
"He is an entrepreneur and I admire what he accomplished. And he understands the value of the Volvo brand. "
For the next summer, the employees at Volvo Cars are to be working even during the holiday in the industry.
"Our employees will have a holiday but the factory can not stand still for a month in the summer, "said Stefan Jacoby.
With in the Stockholm occasion is also the Volvo China Chief, Freeman Shen. He says that the company lags behind competitors such as BMW and Volkswagen in China. But the company has an advantage in being small and fast. Freeman Shen’s factory in Chengdu is expected to be finished by 2013. "We are small compared with our competitors, but we are more efficient.”
Volvo's China manager also stress that a car manufacturer who wants to succeed in China must have a manufacturer in the country.
"No manufacturer has been successful in China with only imported cars, we must have our own development department in China, too.”
The Chinese car market is the world’s largest and still growing. But growth has slowed.
"It is normal with a slowdown after such rapid growth. But the market for premium vehicles will continue to grow rapidly. You can expect double-digit growth over the next 10 - 20 years, "says Freeman Shen.
By Scancomark.se Team
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