The automaker said margins should improve in the second half as production of the EX60 electric SUV ramps up, with CEO Hakan Samuelsson pointing to stronger sales in Europe and the U.S.
Volvo Cars reported second-quarter operating profit of 800 million Swedish crowns ($82.76 million), down from 1.6 billion crowns in the first quarter, as the automaker looks to accelerate its recovery with deliveries of the new EX60 electric model. The company said it still expects earnings margins to improve in the second half of the year once output of its new flagship EX60 SUV fully ramps up. CEO Hakan Samuelsson said Volvo Cars expects significantly stronger sales in the second half than in the first, driven by growth in Europe, a continued recovery in the U.S., and despite what he described as a challenging China market.