Volvo Car AB reported a surge in profit, helped by proceeds from the listing of its electric-car unit Polestar as well as improving supply of semiconductors.
Volvo Cars said operating income came in at 10.8-billion kronor (roughly R18.8bn) for the three months ending June, the Swedish carmaker said on Wednesday.
Volvo Cars said it expects wholesale volumes for 2022 to be better than 2021 levels, even though delivery lags will hurt retail sales, which declined 27% in the second quarter from the same period a year ago.
Carmakers are struggling to boost sales as ongoing supply-chain jams and a souring economic outlook weigh on the industry. Volvo Cars, which aims to produce only electric vehicles by 2030, has bet its more aggressive transition away from internal combustion engines will drive profitability.
“The demand for our products continues to be robust and we remain focused and clear that the short-term business challenges will not weaken our resolve to meet our mid- to long-term strategic ambitions,” CEO Jim Rowan said. “If anything, it will only speed up our pace of change.”
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