[October 28, 2022, Gothenburg] Volvo Cars announced its results for the third quarter of 2022: operating income in the third quarter reached SEK 79.3 billion, a year-on-year increase of 30%; operating profit (excluding joint ventures and affiliates) was 3.5 billion SEK with a profit margin of 4.4%.
Jim Rowan, President and CEO of Volvo Cars, said: “Although the global macro economy is full of uncertainties, with a flexible team structure, strong financial capabilities and sufficient liquidity, we believe Volvo Cars can overcome many challenges. We will continue to move forward towards the goal of transforming into a pure electric luxury car company by 2030, and strive to develop into a global climate zero load benchmark company by 2040.”
The third-quarter performance report shows that vehicle production in this quarter continued to increase compared to the previous quarter. Without major incidents disrupting the supply chain, it is expected to continue to increase in the fourth quarter and 2023, while overall sales in the second half of the year are similar to those of the previous quarter. It will also increase compared to the same period last year.
While global sales are expected to grow, Volvo Cars is also accelerating the pace of its electrification transformation. In the third quarter, Volvo Cars’ RECHARGE series models still accounted for 25.1% of global sales; pure electric models accounted for 7.4%, an increase of 87% compared with the same period last year. It is worth mentioning that Volvo Cars’ global sales of pure electric models in September accounted for 12% of the total sales, far exceeding the 3.5% in the same period last year. It is expected that the sales share of pure electric products will increase to double digits by the end of 2022.
The impressive performance of Volvo Cars’ electrified family products fully confirms the strong demand for high-end electrified products in the global market. Recently, Volvo Cars’ brand-new pure electric flagship SUV VOLVOEX90 is about to make its world premiere, which marks that Volvo Cars will open a new era of electric safety. Since then, Volvo Cars plans to launch at least one pure electric model every year until it achieves the goal of selling only pure electric models in 2030.
In terms of sustainability, Volvo Cars continues to promote global climate action. Carbon emissions in the first three quarters of this year have decreased by 11.8% compared with 2018. Volvo Cars is also on track to achieve an average carbon emissions per car throughout its life cycle by 2025. The 40% reduction target is steadily moving forward.
Facing the uncertain future market environment, Volvo Cars is making every effort to improve the comprehensive operation efficiency of the whole company and strive to improve production efficiency. At the same time, Volvo Cars is also taking concrete actions to strengthen and expand local partnerships, and continue to promote the vertical integration of the supply chain, especially the components and raw materials that are highly related to electrified products, to improve the long-term resilience of the supply chain.