Volvo Vehicles, Mercedes submit boosting income regardless of provide snarls

Chinese language-owned Volvo Autos and Mercedes acknowledged Friday their earnings rose however worldwide present chain bottlenecks induced product gross sales and good points to fall within the final quarter of the yr.

Volvo Vehicles talked about the world lack of semiconductors – an essential tech aspect in trendy vehicles and vehicles – introduced on gross sales and good points to slip within the final quarter of the calendar yr.

Retail product sales fell by 20% to 168,000 models within the fourth quarter of the yr.

However income fell at a smaller sized price, 6%, as “potent demand from clients had a beneficial end result on prices and the sale of additional highly-priced autos,” while curiosity in electrified automobiles continued to extend globally.

Earnings fell to 80 billion kronor ($8.6 billion) from the identical quarter in 2020 while web achieve sank by 60% to 2.3 billion kronor.

Owned by Geely, the Sweden-centered carmaker claimed the semiconductor scarcity worsened within the 2nd fifty % of 2021.

“The result was a 12 months of two halves,” Volvo Vehicles and vehicles stated in an earnings assertion.

“At some stage in the very first 50 %, the market was up by double digits however abruptly stalled within the subsequent 50 % owing to COVID-19-relevant shutdowns in Southeast Asia and different semiconductor-associated creation disturbances,” it stated.

The {photograph} was brighter for the whole 12 months, with revenues leaping by 7% to a report 282 billion kronor.

Internet achieve soared to 14.2 billion kronor, practically double the 2020 determine.

Profitability additionally rose, with its working margin rising by 4 share particulars to 7.2%.

“2021 was a yr to be happy with for Volvo Vehicles,” claimed foremost govt Hakan Samuelsson.

“Looking upfront, uncertainty is nevertheless superior. When half lack has eased to some extent, we anticipate the availability chain to maintain on being a restraining variable,” he warned.

Volvo Autos, which choices to promote solely completely electrical designs by 2030, reported the share of gross sales of rechargeable automobiles – along with plug-in hybrids – grew to 34% within the fourth quarter.

‘Strong internet pricing’

In Germany, Mercedes-Benz defeat anticipations with a file profitability margin of 15% within the final quarter of 2021 “pushed by sturdy web pricing” – or the aptitude to promote its autos for higher worth ranges.

To some extent, automakers had been being outfitted to make use of chips of their most financially rewarding cars.

If Mercedes-Benz’s usually income slid 5% previous yr, individuals of its S-Course sedans rose by 40% and its high-class Maybach model identify by 50% to a brand new doc.

“Our consider rewarding development and cost willpower blended with a captivating services or products lineup translated into stable monetary effectivity,” foremost govt Ola Kallenius stated in a assertion.

Working earnings on the firm’s auto and vans division is predicted to return in near 14 billion euros, in distinction to six.8 billion in 2020 and 6.2 billion in 2019.

The agency releases its whole results on Feb. 24.

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