Volvo Cars announced a 31% year-over-year increase in sales for May, selling a total of 60,398 cars.
The significant increase comes as a positive turnaround for the company following a difficult 2022. Prolonged COVID-19 lockdowns in China, an acute microchip shortage, and other supply constraints severely hindered the company’s production last year.
As Volvo, which is majority-owned by China's Geely, continues to recover from the setbacks of 2022, sales figures have consistently shown an upward trajectory over the past few months.
However, despite recent successes, the automaker remains cautious as it grapples with persistently high costs. In response to the ongoing concern, Volvo
- Initiated a cost-cutting initiative, resulting in the elimination of 1,300 jobs.
- Delayed production of its fully electric SUV until 2024.
Still, Volvo cars experienced strong regional performance, seeing robust growth in:
- Europe, where sales soared 40%
- China, where sales increased 49%
- The U.S., where sales increased 14%
As Volvo Cars continues to navigate an ever-changing automotive landscape, it remains focused on building momentum and sustaining growth. Despite persistent challenges and the need for cost optimization, Volvo's recent sales achievements signify a strong recovery and renewed confidence in the brand's offerings.
Originally posted on Auto Dealer Today