A profit of over a billion seems rather good, we think.
These are exciting times for Volvo. More electric cars are coming soon, the brand is helping to create an environmentally friendly city, and 2020 as a whole has been a remarkably successful year for the Swedish automaker. But now that Volvo has had a little time to review its figures, the luxury manufacturer has announced that the second half of 2020 was actually its best ever, despite the delays and restrictions caused by the pandemic.
Volvo is reporting revenue of SEK151 billion. Convert Swedish Krona to USD and that means revenue of almost $17.9 billion. That's absolutely massive.
However, like any other business, you have to take operating costs into account. Even so, the figures are remarkable. Volvo says it made the equivalent of over $1.1 billion in profit. This could explain why Volvo is so happy to give away $2 million worth of cars at the Superbowl. Volvo attributes much of this success to strong demand for its lineup of chargeable cars. The brand sold a total of 391,751 cars in the latter half of 2020, representing an increase of 7.4 percent compared to the same period in 2019. But the overall figures for the year make for even better reading.
For the full year of 2020, Volvo Cars reported total revenue of over $31.1 billion with just over a billion dollars in profit. This suggests that the first half of the year was most unprofitable, but by reducing "fixed costs in combination with growth," Volvo saw a "positive influence on cashflow and liquidity."
Chief executive Hakan Samelsson says that the brand "acted decisively to limit the impact of the pandemic." More electric car sales will only help the brand do even better as the world continues to adapt to a new way of life. Cars like the XC40 Recharge will only spur the company onto greater successes.