Volvo Car reports return to profit on China sales

Chinese-owned Volvo Car Group announced a return to profits on Wednesday in an upbeat half-yearly report that cited ‘solid’ demand for the Swedish brand particularly in China. The Gothenburg-based manufacturer bucked dismal sales trends in the global auto industry with a 15-per cent hike in turnover to 64.78 billion kronor ($9.39 billion, 7.06 billion euros). Net profits were 535 million kronor in the first six months of the year compared to a 778 million kronor loss for the same period in 2013. Sales in vehicle terms grew by 9.5 per cent year on year to 229,013 units, compared to 209,117 for the same period in the previous year. The group doubled its previous sales outlook for the year to 10 per cent, partly due to strong demand from China where sales grew by 34.4 per cent, largely offsetting a 10 per cent fall in US sales, according to AFP.