Weak market impacts Volvo
Low sales volumes in a weak market impacted profitability for Volvo Buses in the third quarter of 2013. Net sales decreased by 9% to £361.7m/SEK3,705m (Q3 2012: £398.9m/SEK4,076m). Order intake in the period improved and totalled 2,780 buses, which was 41% higher than the same period last year. Volvo Buses reported an operating loss of £16.04m/SEK164m for the third quarter of 2013 having delivered 1,939 buses, compared to 1,766 units for the same period in 2012. Cost reduction measures are ongoing in Volvo Buses to offset the negative market development including discontinuation of bus production in Saffle, Sweden, during the second quarter of 2013.
During the period, Volvo has continued to strengthen its global position in hybrid technology by adding an articulated hybrid bus to the current range. In South America, Volvo reports a noticeable trend towards electro mobility and has received a ‘breakthrough order’ for 200 hybrid buses from Colombia. In Europe, a strategic partnership has been signed with Hamburger Hochbahn in Germany based around plug-in hybrid buses. In addition, the company has entered the French market with two hybrids delivered to Lyon.