Volvo Cars triples operating income to £489 million

Volvo Cars has announced that its operating income has more than tripled to £489 million year-on-year in the first six months of 2016.

Volvo Cars’ global sales also rose significantly by 10.5 per cent during the first half of the year, according to the Swedish vehicle manufacturer. The marque was keen to point out that the first full half-year results for sales of its XC90 SUV were very promising indeed.

In terms of its operating profit margin, the manufacturer said this had also more than tripled to 6.7 per cent in the first half of 2016, up from 2.2 per cent recorded in the first half of 2015. In the UK, Volvo currently has a network of 102 registered dealerships and had sold 43,432 vehicles in 2015. This year, however, the renowned marque has targeted UK sales in excess of 48,000.

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Håkan Samuelsson, the president and chief executive of Volvo Cars, said: “These numbers demonstrate that the momentum around Volvo Cars’ transformation is building.

“This robust first-half financial and operational performance, combined with a positive product pipeline, allows me to state confidently that Volvo Cars expects to report another record full year in 2016 in terms of sales and profitability.”

Volvo currently offers seven vehicles in the UK. These are the classic V40, S60, V60, XC60 and XC90 models, as well as the more recently launched S90 and V90. The manufacturer plans to add two more models to its current offering, with the S40 and XC40 due in the coming months.