Maybe Next Year: Volvo Pushes Back Sales Targets to 2021

maybe next year volvo pushes back sales targets to 2021

Volvo Cars will be unable to reach its global volume target of 800,000 vehicles this year. Considering everything that has — or hasn’t — happened in 2020, any automaker that ends the period moving more metal than they did in 2019 should probably have a statue erected in front of their headquarters celebrating a major industrial achievement.

Volvo sold 705,452 units the last time our Earth went around the sun, forcing it to face the music when considering goals in what CEO Håkan Samuelsson calls the “corona year.”

The pandemic and its accompanying government lockdowns have proven the perfect excuse for the industry, as it’s impossible to argue that anti-virus measures haven’t negatively impacted sales/production. Volvo, after making fairly consistent headway over the last few years, noted it has already seen a 20-percent decline in volume (and a 14.1-percent loss of revenue) through the first half of 2020. That’s 269,962 cars through the end of June.

At the time of the report’s release, Samuelsson said Volvo expected a strong recovery through the second half of the year — potentially matching 2019. But he stopped short of making the impossible-to-keep promise of making a full recovery. “If the market recovers as we expect, we anticipate sales volumes to return to the levels we saw in the second half of 2019 and it is our ambition return to similar profit levels and cash flow,” he explained.

That was less than a week ago. Now, the messaging is a bit more grounded — though totally understandable. According to Automotive News, the CEO made it crystal clear that the corporate goal of 800,000 deliveries isn’t happening until 2021. “There will probably be a year delay,” Samuelsson told the outlet. “Before the pandemic we were on track to reach that or come very close to that.”

“In the first half we lost 21 percent, which is almost 71,000 cars,” he continued. “Therefore, even if we reach what we are forecasting for the second half, which is a return to the sales volume we saw last year, the year as a whole will be less than in 2019.”

He then tapped into the most irritating phrase to come out of 2020 to explain how the company would turn the situation into something positive while envisioning a novel way of doing business.

“In 2021 our absolute ambition is to resume growing,” Samuelsson said. “But it will be a new normal with a lot more electric cars, more online sales, less traveling, more videoconferencing and more working from home. There will be positive effects that result from the pandemic.”

[Image: Volvo Cars]

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  • Sgeffe Sgeffe on Jul 24, 2020

    “[...] should probably have a statue erected in front of their headquarters celebrating a major industrial achievement.“ Heaven knows that in this environment, someone would just tear it down.

  • Inside Looking Out Inside Looking Out on Jul 24, 2020

    It is the end of the world, who is going to buy Volvo? Nah, I prefer NSTV. Hummer please or even better Toyota Hilux equipped with made in China machine gun. "have a statue erected in front of their headquarters" Don't make it white Volvo, it will be toppled in a ms.

  • Snickel Fritz I just bought a '97 JX 4WD 4AT, and though it's not quite roadworthy yet I am already in awe of it's simplicity and apparent ruggedness. What I am equally in awe of, is the scarcity of not only parts but correct information regarding anything on this platform. I'm going to do my best to get this little donkey back on it's feet, but I wouldn't suggest this as a project vehicle for anyone who doesn't already have several... and a big impressive shop with a full suite of fabrication/machining/welding equipment, and friends with complimentary skillsets, and extra money, and... you get the idea. If you don't, I urge you to read up on the options for replacing anything on these rigs. I didn't read enough before buying, and I have zero of the above suggested prerequisites... so I'm an idiot, don't listen to me. Go buy all of 'em!
  • Bryan Raab Davis I actually did use the P of D trope, but it was only gentle chiding, for I love old British cars of every sort.
  • ScarecrowRepair The 1907 Panic had several causes of increased demand for money:[list][*]The semi-annual shift of money between farms and cities (to buy for planting and selling harvests)[/*][*]Britain and Germany borrowing for their naval arms race[/*][*]San Francisco reconstruction borrowing after the 1906 earthquake and fire[/*][/list]Two things made it worse:[list][*]Idiotic bans on branch banking, which prevented urban, rural, and other state branches from shifting funds to match demands. This same problem made the Great Depression far worse. Canada, which allowed branch banking, had no bank failures; the US had 9000 failures.[/*][*]Idiotic reserve requirements left over from the Civil War which prevented banks from loaning money; they eventually started honoring IOUs illegally and started the recovery.[/*][/list]Been a while since I read up on it, so I may have some of the details wrong. But it was an amazing clusterfart which could have been avoided or at least tamed sooner if states and the feds hadn't been so ham handed.
  • FreedMike Maybe this explains all the “Idiots wrecking exotic cars” YouTube videos.
  • FreedMike Good article! And I salute the author for not using the classic “Lucas - prince of darkness” trope, well earned as it may be. We all know the rap on BL cars, but on the flip side, they’re apparently pretty easy to work on (at least that’s the impression I’ve picked up). On the other hand, check the panel fits on the driver’s and passenger’s doors. Clearly, BL wasn’t much concerned with things like structural integrity when it chopped the roof off a car designed as a coupe.