Volvo Cars became the next victim of the trade war between China and the U.S.

Volvo Cars became the next victim of the trade war between China and the U.S.

The tense economic situation has forced Volvo to postpone the listing. The confrontation between the two countries has led to additional costs for the Swedish brand, as well as Chinese concern.

The results of the 2018 Volvo increased its operating profit by 0.9% compared to 2017. Moreover, revenue grew by 21%, while new car sales is 12.4%. But this does not allowed the company to safely move the trade confrontation between the US and China. According to information from the international analytical Agency Reuters gross margin declined from 6.7% to 5.6%.

CEO Hakan Samuelsson, Volvo Car said that this year the brand will have to cut spending that would be offset by a drop in margins, which should continue this year. At this point Samuelsson fears that the U.S. will impose duties for European cars. It will seriously affect the sales of the company.

It should be noted that as part of the Chinese Geely group, Volvo has a great safety cushion. Thanks to the new rule, the company is actively developing in the premium segment.

News tags