Volvo Notes Positive Signs In China: Continues New Tech Investments
Volvo will continue investments in “new technologies and products.” Hopefully, the XC40 Recharge P8 will not be delayed.
Volvo Cars today released a revised outlook statement for 2020, in which the company expects a weak first half of the year, severely impacted by the coronavirus outbreak.
However, despite the slowdown of the economy, the company reassures that investments in “new technologies and products” (obviously related to electrification) will continue.
The main new Volvo product is an all-electric Volvo XC40 Recharge P8.
“Considering the uncertain economic outlook, it is challenging to guide on 2020 performance. The weakening market and production disruptions will impact the first half year results negatively as sales, profit and cash flow are expected to be lower than last year’s and it will be challenging to recover the impact during the remainder of the year. Despite uncertainty about economic outlook, Volvo Cars continues to invest in new technologies and products to safeguard long term future.”
A very positive sign comes from the Chinese market, which a few months ago was experiencing similar troubles as most of the rest of the world today.
Volvo says, plants are online again (Polestar even managed to start series production of the Polestar 2) and that showroom traffic is recovering:
“On a positive note, in China Volvo Cars’ four manufacturing plants have reopened after an extended closure period following the Chinese New Year. Current showroom traffic indicates a recovery of the Chinese car market which clearly demonstrates the advantages of a global footprint.”
The manufacturing plants in Europe and in the U.S. will remain temporarily closed until the COVID-19 outbreak is sorted out.
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