Volvo Cars has somehow set the record for its best second half performance in terms of sales and revenue generated in history, and it took place in 2020 where there was still the pandemic brought about by the COVID-19.
Volvo Cars' Record-Breaking Second Half Performance
Automotive World has mentioned that the Swedish luxury car and automobile creator and manufacturer 151 billion SEK or 17 billion USD in total for the second half of 2020. It was also backed with a 9.5 billion SEK or 1.1 billion USD also set on the same time frame of last year.
Their overall profit got an increase of up to 8.2 percent, and their revenue during the measured period also got a raise of 4.9 percent. And in conclusion, there was a profit margin being listed at 6.3 percent, ending their 2020 stint with a much stronger impact.
All of those numbers being taken into consideration are not just numbers by itself, but such record-setting ones. Volvo's performance as mentioned through the report mentioned makes it as the best ever second half performance of the company in history ever since it was established way back in 1927.
As per the car sales and engagements that they did, Volvo sold at around 391,751 car units during the second half of 2020. It was also an increase of around 7.4 percent which is higher than their performance in 2019 of the same time period.
To sum up the whole 2020 performance of the car company, their total revenue is being capped off at an estimate of 263 billion SEK or 31 billion USD all in all. The operating profit is set on the other hand at 8.5 billion SEK or nearly 1 billion USD. The company also had its way of managing all the reduced fixed costs along with the company's growth, and it has reflected on to their performance in a great and positive manner, especially with their desired output on liquidity as well as their own cash flow.
Volvo's North America Performance
Yet even with these numbers showing a greater force of sales and performance for their overall engagements, the sales of the company's car units and models in North America has dropped in a significant 20 percent or 2.6 billion USD in the cash amount as being reported by TT News. It also saw a downfall on other regions outside their home country of Sweden, with the exemption of Asia wherein it saw a rise on their sales at around 6 percent or a massive 2.5 billion USD.
Although this has been the news for the company itself, their Volvo Trucks arm which develops huge trucks under their line could find a great opportunity in North America as the demand for those in the region has seen a skyrocket performance of 167 percent performance in 24,939 units compared to the 9,340 orders in 2019. Volvo Trucks America and the Mack Trucks are the company's North America truck lines.