Volvo said it had registered a loss in the third quarter because of spending on new technology and negative currency effects. Hit the jump to read the rest of the story.
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The Swedish automaker owned by China’s Zhejiang Geely Holding Group Co., announced an operating loss of 763 million kronor ($116 million) in the period, compared with 748 million kronor in earnings before interest and taxes a year ago.
In the first nine months however, Volvo reported an operating profit of 477 million kronor and the automaker expects to report a positive result for the full year, it said in a statement on Thursday.
“There are concerns about consumer confidence given the turbulence of financial markets,” CEO Stefan Jacoby said in the statement. “At the same time I’m very pleased about the positive sales developments and the strength of our brand, and the outlook for 2011 remains positive.”
Volvo aims to more than double annual sales to 800,000 vehicles by 2020 and challenge luxury-car leaders BMW AG, Volkswagen AG’s Audi and Daimler AG’s Mercedes. It plans to invest as much as $11 billion over the next five years to tap demand in markets including China, where it’s building a factory in Chengdu and a research and development center.
