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Volvo reports impacted financial results for first half of 2020 due to the COVID-19 pandemic, and expects strong recovery in second half.

23 Jul 2020 | International News : Sweden

Volvo Cars reports its financial results for the first half of 2020, which were impacted by the COVID-19 pandemic and its effect on the global economy. It expects its business to recover in the second half of the year, as car markets normalise.

The company recorded an operating result of -$155 million over the first six months of 2020, as revenue fell by 14.1% to $17.5 billion.

Production of the XC40 P8 Recharge will start later this year
While sales fell in absolute numbers during the first half of the year, Volvo Cars took market share in China, the U.S.A and Europe, where Germany was among the strongest-performing markets. 

It also saw a strong increase, of 79.8%, in demand for its chargeable plug-in hybrid models sold under the Volvo Recharge brand, while it experienced strong growth in consumer interest in its online sales channels as well.

Volvo Cars' global sales during the first six months of 2020 fell by 20.8% to 269,962 cars, as governments in many key markets implemented stay-at-home orders or other restrictions on movement, severely affecting economic activity and showroom traffic. 

Volvo Cars is the only carmaker to offer a plug-in hybrid variant of every model in its portfolio. Later this 2020, it will start production of the XC40 P8 Recharge, the company's first fully electric model and the first of several fully electric Volvos to be launched in the coming years.

Full details of Volvo Cars' financial results for the first half of 2020 can be found here.

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