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Volvo Car
Quarterly Report • Oct 23, 2024
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Quarterly Report
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VOLVO CAR GROUP INTERIM REPORT THIRD QUARTER 2024
JULY–SEPTEMBER 2024
- Retail sales increased by 3% to 172.8 (167.5) thousand cars.
- Revenue amounted to SEK 92.8 (92.0) bn, supported by higher volume.
- EBIT excluding share of income in JVs and associates was SEK 5.7 (6.1) bn, supported by lower cost, mainly from materials. It was also impacted by unfavourable foreign exchange rate effects from the valuation of operating assets and liabilities. Operating income (EBIT) was SEK 5.8 (4.5) bn.
- EBIT margin excluding share of income in JVs and associates was 6.2 (6.7)%. EBIT margin was 6.2 (4.8)%.
- Basic earnings per share was SEK 1.41 (1.01).
- Operating and investing cash flow was SEK –0.4 (1.7) bn.
- In August, Volvo Cars took full ownership of HaleyTek. Prior to the transaction, Volvo Cars ownership of HaleyTek amounted to 60%.
- In September, Volvo Cars announced updated electrification and CO2 ambitions for 2025 and 2030, as well as updated its financial ambitions related to growth and EBIT margin for 2026.
UPDATES AFTER THE PERIOD FORWARD LOOKING
• In October it was announced that structural changes would be made in the Commercial area of the business, effective from November 1. Those changes include Björn Annwall, Chief Commercial Officer & Deputy CEO, stepping out of his role and taking on new opportunities outside of Volvo Cars.
• Our aim is to outgrow the premium car market until 2026 from 2023 on a CAGR basis, but that journey will not be linear. Given the accelerating weakness in the market and our focus on safeguarding value over volume, we expect minimal volume growth during Q4, 2024. As a result of this, we now anticipate full-year sales growth of 7–8 per cent in 2024 (previous outlook: retail sales growth of 12–15%, provided there are no major disruptions).
| 3 Months 9 Months |
12 Months | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK bn unless otherwise stated | Jul–Sep 2024 |
Jul–Sep 2023 |
∆% | Jan–Sep 2024 |
Jan–Sep 2023 |
∆% | LTM | Full year 2023 |
| Retail sales, k units1) | 172.8 | 167.5 | 3 | 560.9 | 509.2 | 10 | 760.4 | 708.7 |
| Revenue | 92.8 | 92.0 | 1 | 288.1 | 289.9 | –1 | 396.8 | 399.3 |
| Research and development expenses2) | –3.4 | –2.9 | –17 | –12.0 | –9.2 | –30 | –15.2 | –12.9 |
| Operating income (EBIT)3) | 5.8 | 4.5 | 30 | 18.5 | 14.6 | 27 | 22.5 | 19.9 |
| EBIT excl. share of income in JVs and associates3) | 5.7 | 6.1 | –7 | 20.7 | 18.9 | 10 | 27.9 | 25.6 |
| Net income | 4.4 | 3.2 | 35 | 13.6 | 10.7 | 27 | 15.8 | 14.1 |
| Basic earnings per share, SEK | 1.41 | 1.01 | 40 | 4.33 | 3.34 | 30 | 5.37 | 4.38 |
| EBITDA3) | 10.4 | 8.7 | 20 | 34.4 | 27.1 | 27 | 43.0 | 37.4 |
| Cash flow from operating activities | 9.2 | 10.1 | –9 | 21.1 | 24.7 | –15 | 40.1 | 42.9 |
| Cash flow from investing activities | –9.6 | –8.4 | –15 | –33.5 | –39.8 | –16 | –44.4 | –51.8 |
| Gross margin, %3) | 20.5 | 19.6 | 4 | 20.9 | 18.8 | 11 | 20.7 | 19.4 |
| EBIT margin, %3) | 6.2 | 4.8 | 29 | 6.4 | 5.0 | 28 | 5.7 | 5.0 |
| EBIT margin excl. share of income in JVs and associates, %3) |
6.2 | 6.7 | –8 | 7.2 | 6.5 | 10 | 7.0 | 6.4 |
| EBITDA margin, %3) | 11.2 | 9.4 | 19 | 12.0 | 9.3 | 28 | 10.8 | 9.4 |
1) Non-financial operating metric.
2) See further information in footnote to R&D table, page 11.
3) Non-IFRS measure (alternative performance measure), see Alternative performance measures on page 27.
Building resilience in a turbulent world
Dear shareholders and other Volvo Cars stakeholders,
Our industry is facing an increasingly volatile environment. Macroeconomic headwinds are intensifying, as is geopolitical complexity. Despite these challenges we demonstrated resilience during the third quarter of 2024, which is reflected in our overall financial performance. However, continued cost actions remain necessary going forward, and we are determined to deliver on our ambitions.
"We are confident that our strong and balanced product portfolio of BEVs, PHEVs and mild hybrids will remain attractive going forward"
Gross margins were broadly in line with our underlying operational gross margins for the first half of 2024 and came in at 20.5 per cent for the third quarter. Revenues for the period amounted to SEK 93 billion and our core EBIT landed at SEK 5.7 billion, translating into a core EBIT margin of 6.2 per cent. Free cash flow was around flat at SEK –0.4 billion.
As stated recently at our Capital Markets Day, our aim is to outgrow the premium car market until 2026, by which we mean from 2023 until 2026 on a CAGR basis, and generate a core EBIT margin of 7–8 per cent as well as strong free cash flows from 2026 onwards. We are determined to reach these ambitions and have a clear roadmap towards achieving them. But let me reiterate what I have communicated before: the journey will not be linear. And in recent weeks, we have seen the external environment worsen considerably – a fact also echoed in the revised industry forecasts for 2024 and 2025 by third-party analysts.
Strengthening our premium position
We have grown faster than our premium peers this year, even as overall industry demand continues to soften and is now affecting the premium segment as well. Our Q3 sales rose by 3 per cent to 172,849 cars sold, with electrified models (fully electric and plug-in hybrid cars) representing 48 per cent of the total. That electrified share was the highest for
the premium car industry in Europe. For the first nine months, our sales increased by 10 per cent year-on-year. This puts us in a position to outgrow the premium car market in 2024, which is expected to grow by less than 1 per cent this year.
In Europe, we took market share in an increasingly competitive market while retaining our premium pricing position. Although the market as a whole is softening, we are encouraged by the strong performance of our balanced, portfolio of fully electric (BEV) cars, plug-in (PHEVs) and mild hybrids. The EX30 remained among the best-selling BEVs in Europe and the XC60 is still one of the most popular PHEVs in the region.
The car market in our main regions of China, Europe and the US is increasingly under pressure which affects demand. We have retained our premium position in China by focusing on price discipline, but this has affected sales volumes. In the US, the performance of our electrified range remained solid, but here too the overall market has weakened. Lower interest rates may improve the situation over time in these markets, and we continue to monitor developments closely.
Yet to be successful in the marketplace of today, companies need to be fast, agile and pragmatic in the face of constantly changing business conditions. That is the approach we are taking at Volvo Cars. However, given the accelerating weakness in the market and our focus on safeguarding value over volume, we expect minimal volume growth during the fourth quarter. As a result of this, we now anticipate full-year sales growth of 7–8 per cent instead of 12–15 per cent, which is more aligned to the current environment and brings our inventory and volume planning more in line with market realities.
Safeguarding value and cash
We are determined to safeguard value and cash as a company, while working resolutely towards our 2026 ambitions. However, the revised sales guidance also affects our expectations for free cash flow for this year. We have actively adapted our sales and production plan to ensure reductions in inventory during the second half of the year. This is materialising according to plan, and we remain focused on diligent inventory management. At the same time, we are also moving cars off our balance sheet in some European markets as part of our adjusted commercial approach.
While we continue to drive our free cash flows towards neutral for 2025 and strong from 2026, we now anticipate our full-year free cash flow to be single digit-negative in SEK bn for 2024, rather than neutral. This is due to lower sales expectations in the fourth quarter and overall weakness in the market. We will continue to take other cash actions, and we remain focused on making our cost base as a whole more efficient. To this end, we are looking at both investments as well as fixed and variable costs to lower our cost structure and free up cash.
Delivering on our long-term value creation ambitions also requires investments. As we explained in detail during our Capital Markets Day, we are investing in new technologies, infrastructure and cars to ensure that we become a leader in next-generation mobility. And as previously communicated, we expect these investments to peak during the 2024–25 period, all of which has been factored into our plans. Once this heavy investment phase is over, we will start generating strong free cash flows from 2026 onwards.
We have five fully electric cars on the road, and five more in development. As previously communicated, we will start building the EX30 in our Ghent plant during the first half of 2025, with volumes ramping up in the second half.
Starting with the EX90 all our new fully electric cars will be software-defined, reflecting our status as the first European car company to harness core computing technology. They will also benefit from our Superset tech stack: one set of hardware and software that will make our fully electric cars better over time and allows us to develop new cars in a more efficient and more profitable way.
On top of that we continue to invest in our hybrid cars, exemplified by the updated, ready-for-a-new-era version of our iconic XC90 plug-in hybrid SUV. By refreshing these and other hybrid models, we maintain a balanced product portfolio for the current marketplace. All this will allow us to outgrow the premium car market and take market share.
Looking ahead
As said, the industry will remain under pressure. Hence, we are doubling down on our actions to tackle these external challenges, with the aim of building an even more resilient company and further reinforcing operational efficiencies.
Our internal cost efficiency initiative has already resulted in lower variable costs and remains a crucial focus area. Improving cost efficiency is an ongoing exercise, and a core part of how we operate as a company.
We are confident that our strong and balanced product portfolio of BEVs, PHEVs and mild hybrids will remain attractive going forward. Coupled with our premium brand positioning, this will help us to partly mitigate the effects of a weakening market, but not completely.
We cannot control the current geopolitical uncertainties and economic headwinds. But we can navigate them with speed and purpose, and perhaps most importantly, with a clear focus. Our focus is more than ever on preserving cash while creating value – for our shareholders, our customers and our employees.
We have proven before that we can handle challenges, and we will handle them again. Business is not a game of perfection, it is a game of progress. And despite current challenges, Volvo Cars is making progress. This is shown in our results, our technology, our talent, and ultimately our cars.
Jim Rowan
Chief Executive Officer
Operational progress
Our industry is changing, and we strive to be a leader in that change. This section provides an update on the operational events from the quarter.
ADJUSTED AMBITIONS
In the beginning of September, some of Volvo Cars' ambitions set for the coming years were adjusted.
Volvo Cars aims for 90 to 100% of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord. The remaining 0–10% will allow for a limited number of mild hybrid models to be sold, depending on market conditions and customer demand. This replaces Volvo Cars' previous ambition for its line-up to be fully electric by 2030. However, with five fully electric cars already on the market and another five models in development, Volvo Cars remains committed to the long-term ambition of full electrification, and the long-term investment plan and product strategy remains geared towards fully electric cars. Volvo Cars will retain its position as an industry leader in electrification while continuing to develop its plug-in and mild hybrid cars, providing it with a balanced portfolio that serves as a clear bridge to an all-electric future.
Volvo Cars also still aims to reach net zero greenhouse gas emissions by 2040.
The ambitions adjustment is not expected to have any material impact on Volvo Cars' capital expenditure plans. For the financial ambitions, rather than aiming for an absolute revenue target, the ambition is now to outgrow the premium car market until 2026 from 2023 on a CAGR basis (previous ambition revenue SEK 550–600 bn).
Given the increased complexity especially in relation to global trade and tariffs, Volvo Cars also aims to achieve an EBIT margin excl. JVs and associates of 7–8% for the full year in 2026 (previous ambition "above 8%").
While we continue to drive our free cash flows towards neutral for 2025 and strong from 2026, we now anticipate our full-year free cash flow to be single digit-negative in SEK bn for 2024.
Sustainability
Due to the updated electrification ambitions, Volvo Cars' ambition for CO2 reduction is updated to reach a 30 to 35% reduction per car by 2025, and 65 to 75% reduction per car by 2030, compared to the 2018 base year. With the adjustment, Volvo Cars still retains the position as an industry leader in electrification.
Continuing to make progress on these ambitions, for the first nine months Volvo Cars reached a CO2 reduction of 25%, compared to the 2018 base year. The main contributor for the reduction is the increased sale of fully electric and plug-in hybrid vehicles. In the third quarter, Volvo Cars made its first deliveries of the new fully electric SUV, the EX90. Related to this, Volvo Cars has also published the life cycle assessment report for the EX90, showing a total carbon footprint which is about half as much as the XC90 mild hybrid1).
Volvo Cars is also continuing to strengthen the company's position on sustainability matters. The company has published its first position papers on nature and biodiversity as well as on sustainable materials.
1) Based on a total driving distance of 200,000 kilometres. The total carbon footprint depends on different factors such as grid mix for charging. The above reference car is based on European average electricity mix.
| CO2-reduction per car |
CO2-emissions per car, tonnes |
Reduction, % |
|---|---|---|
| 20182) | 54.9 | — |
| 2024 Jan–Sep2) | 41.3 | 25 |
| 2025 ambition2) | 35.7–38.4 | 30–35 |
| 2030 ambition2) | 13.7–19.2 | 65–75 |
2) The CO2-emissions do not include production and distribution of fuel and electricity.
CO2 reduction (tonnes per car)
Quarterly highlights
Volvo Cars Capital Markets Day
On 5 September, Volvo Cars held its Capital Markets Day in World of Volvo, Gothenburg, Sweden. At the event, the company presented its strategy, including the roadmap to our updated ambitions, introduction of the Superset tech stack and the SPA3 platform. Recordings and presentation material from the event can be found on the Volvo Cars Investor Relations website (investors.volvocars.com/cmd).
Volvo Cars adjusts key ambitions – remains committed to fully electric future
In the beginning of September, Volvo Cars announced adjustments to its ambitions regarding electrification, CO2, growth and EBIT.
The long-term aim to become a fully electric car company remains, as well as the ambition to reach net zero greenhouse gas emissions by 2040. However, due to changing market conditions and customer demands, Volvo Cars has adjusted its ambitions. For more details, see page 5.
All future fully electric Volvo cars will originate from one single technology stack
In September, Volvo Cars revealed a new, game-changing approach to technology. Starting with the EX90, Volvo Cars' all future fully electric cars will be based on the same fundamental core of systems, modules, software and hardware, called the Volvo Cars Superset tech stack. It's a single tech and software base that contains all modules and functionalities that Volvo Cars will use in the future product line-up. Like a set of building blocks, it can be configured in many different ways. Each new car will be a selection, or a subset, of building blocks from the Superset tech stack, and Volvo Cars will continuously improve and grow the tech stack. Volvo Cars is also developing a new electric technology base, called SPA3 (Scalable Product Architecture), which will be underpinned by the Volvo Cars Superset tech stack. By having a scalable SPA3 architecture, Volvo Cars create increased synergies and improve technology efficiency when it comes to core computing, batteries, e-motors, megacasting and modular manufacturing – all whilst improving customer experience. The first car to be built on SPA3 will be the forthcoming all-electric EX60 midsize SUV.
Volvo Cars expands collaboration with NVIDIA
In the beginning of September, Volvo Cars announced that the collaboration with NVIDIA will be expanded. The Volvo EX90 is the first truly software-defined Volvo car, built on a centralised core compute architecture, made possible in collaboration with NVIDIA. This setup enhances everything from AI-based safety features to the customer experience, all while paving the way for safe autonomous driving. Later this decade, Volvo Cars will introduce cars built on NVIDIA DRIVE Thor, which will enable the company to deploy even more advanced driving assistance and safety features, develop autonomous driving, and introduce generative AI-based capabilities and in-car experiences.
Successful launch of new Volvo XC90
On 4 September, Volvo Cars launched the new and improved Volvo XC90. The XC90 is a Volvo Cars icon, and thanks to a broad suite of technology and design updates inside and out, the award-winning and best-selling flagship hybrid SUV is now better than ever before. It's a premium seven-seater with 'comfortable' as its middle name, it's one of the safest cars on the road, and in plug-in hybrid form it's an outstanding electric car with a back-up plan, offering more than 70 kilometres of fully electric range on a single charge under the "Worldwide harmonised Light vehicle Test Procedure" (WLTP) testing cycle.
Volvo Cars takes full ownership of HaleyTek
In August, Volvo Cars took full ownership of HaleyTek, a Gothenburg-based developer for Android-powered infotainment systems. Prior to the transaction, Volvo Cars held 60% of the shares in HaleyTek and consolidated the company. The remaining 40% was held by the global mobility technology company ECARX. The acquisition of the remaining stake in HaleyTek is a strategic step for Volvo Cars to further strengthen its technological capability in software development for current cars and take ownership over technologies crucial to the company's future products.
Third quarter financial summary
SALES AND MARKET DEVELOPMENT
The overall global passenger car market for the third quarter was in line with the same period last year. The broader market landscape remains uncertain and complex, and in addition the demand is relatively soft. The global automotive production volumes for the full year are forecasted to slightly decrease compared to previous year according to S&P Global.
Despite the complex economic and geopolitical landscape and weak consumer sentiment in some regions, Volvo Cars has strengthened its market position and retail sales increased by 3% compared with the third quarter 2023, led by the electrified cars, which represent 48% of total sales. Volvo Cars' BEV sales doubled compared to the third quarter last year, and BEV share accounted for 25% of retail sales. Wholesales increased by 3% and production decreased by 13% with improved inventory levels. The growth in retail sales was mainly driven by a strong performance in Europe as well as the continuous success of the EX30. EX90, the fully electric large SUV, started being delivered to customers during the third quarter and will gradually ramp up during the remainder of the year.
| Volvo Cars' market share per propulsion type1) 2) |
Jan–Aug 2024 |
Jan–Aug 2023 |
|---|---|---|
| BEV | 1.73% | 1.21% |
| PHEV | 3.98% | 5.08% |
| ICE (incl. mild hybrids) | 0.73% | 0.72% |
| Total | 1.05% | 0.96% |
| Total industry volume share and growth by propulsion type1) 2) |
Jan–Aug 2024 |
Growth YoY |
|---|---|---|
| BEV | 15% | 19% |
| PHEV | 6% | 41% |
| ICE (incl. mild hybrids) | 79% | –5% |
| Total | 100% | 2% |
1) Volvo Cars is and will continue to be positioned in the premium segment of the automotive market. As the market is transforming with electrification and digitalisation the definition of premium is being redefined. To simplify and to avoid the risk of excluding important parts of the market, we report our market share in relation to the global passenger market.
2) Source: Includes content supplied by S&P Global Mobility Industry Performance in October 2024, capturing more than 85 per cent of total world sales per August. All rights reserved.
Europe
The overall European passenger car market decreased by 6% compared to the same period last year, whereof the BEV segment decreased by 10% and the PHEV segment decreased by 15%. The market is affected by the high interest rates, general weak economic environment and softened consumer confidence, although there are variances between different countries.
Volvo Cars' retail sales increased by 31%, with UK and Germany at the top selling 18.8 and 14.1 thousand cars respectively. The share of BEVs and PHEVs accounted for 68 (57)% in the quarter, whereof BEV sales accounted for 40 (21)% of retail sales.
China
The total Chinese passenger car market increased by 5%, whereof the BEV and PHEV segments increased by 23% and 113% respectively. The demand for combustion engine cars continues to decline, as a large part of the Chinese market is moving to electrification. The overall competition in the Chinese car market continued to be fierce, with multiple EV brands gaining attractions in the mass market segment.
Volvo Cars' retail sales decreased by 23%. BEV and PHEV share combined accounted for 11 (8)% in the quarter, whereof BEV sales accounted for 2 (2)% of retail sales.
US
The total US passenger car market declined by 2% compared to the same period 2023, whereof the BEV segment increased by 11% and the PHEV segment decreased by 20%. Higher interest rates, weaker consumer spending and fewer selling days have had an impact.
Volvo Cars retail sales decreased by 12% compared to the same period last year. BEV sales were partly held back due to the decision to postpone the launch date of the EX30 due to the recently increased tariffs. BEV and PHEV share combined accounted for 39 (27)% in the quarter, whereof BEV share alone accounted for 6 (10)% of retail sales.
Other markets
Volvo Cars' retail sales in other markets increased by 3%, with South America as a strong region. The markets with highest retail sales were South Korea, Canada and Japan. The share of BEV and PHEV sales combined in other markets was 47 (33)%, whereof BEV accounted for 29 (15)%.
Sales development per carline
The SUVs, comprising of Volvo Cars' XC and EX models, accounted for 82 (80)% of total sales, driven by the bestselling models XC60 and XC40. During the third quarter, the EX30 continued to drive year-over-year growth and the first EX90s were delivered to customers. The Sedan and Wagon (incl. MPV) segments' share of total sales amounted to 12 (15)% and 6 (5)% respectively.
| 3 Months | 9 Months | 12 Months | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Retail sales, k units | Jul–Sep 2024 |
Jul–Sep 2023 |
∆% | Jan–Sep 2024 |
Jan–Sep 2023 |
∆% | LTM | 2023 | ∆% |
| Europe | 80.8 | 61.8 | 31 | 274.4 | 208.8 | 31 | 360.4 | 294.8 | 22 |
| China | 34.9 | 45.4 | –23 | 113.0 | 123.9 | –9 | 159.2 | 170.1 | –6 |
| US | 28.5 | 32.4 | –12 | 89.5 | 92.1 | –3 | 126.1 | 128.7 | –2 |
| Other | 28.7 | 27.9 | 3 | 83.9 | 84.3 | — | 114.7 | 115.1 | — |
| Retail sales total | 172.8 | 167.5 | 3 | 560.9 | 509.2 | 10 | 760.5 | 708.7 | 7 |
| Electrified cars | 83.1 | 56.8 | 46 | 256.7 | 193.2 | 75 | 329.5 | 266.0 | 24 |
| whereof BEVs | 42.8 | 21.4 | 100 | 133.6 | 80.6 | 125 | 166.3 | 113.4 | 47 |
| Electrified cars share | 48% | 34% | 46% | 38% | 43% | 38% | |||
| whereof BEV share | 25% | 13% | 24% | 16% | 22% | 16% | |||
| Wholesales | 171.3 | 165.6 | 3 | 575.5 | 528.4 | 9 | 779.3 | 732.3 | 6 |
| Production volume | 146.6 | 169.0 | –13 | 594.0 | 548.5 | 8 | 812.3 | 766.7 | 6 |
| 3 Months | 9 Months | 12 Months | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Top 10 Retail sales by market, k units |
Jul–Sep 2024 |
Jul–Sep 2023 |
∆% | Jan–Sep 2024 |
Jan–Sep 2023 |
∆% | LTM | 2023 | ∆% |
| China | 34.9 | 45.4 | –23 | 113.0 | 123.9 | –9 | 159.2 | 170.1 | –6 |
| US | 28.5 | 32.4 | –12 | 89.5 | 92.1 | –3 | 126.1 | 128.7 | –2 |
| UK | 18.8 | 12.3 | 53 | 49.2 | 37.1 | 32 | 62.2 | 50.1 | 24 |
| Germany | 14.1 | 9.9 | 42 | 45.6 | 30.5 | 49 | 60.6 | 45.5 | 33 |
| Sweden | 8.4 | 7.2 | 17 | 31.8 | 27.2 | 17 | 45.6 | 41.0 | 11 |
| Netherlands | 6.1 | 2.3 | 171 | 23.8 | 11.6 | 105 | 28.5 | 16.3 | 75 |
| Belgium | 5.6 | 5.0 | 11 | 20.7 | 16.9 | 22 | 27.6 | 23.9 | 16 |
| Italy | 4.6 | 4.0 | 16 | 16.6 | 14.5 | 14 | 21.2 | 19.2 | 11 |
| South Korea | 3.9 | 4.0 | –3 | 11.1 | 12.5 | –11 | 15.6 | 15.3 | 2 |
| Canada | 3.5 | 3.4 | 2 | 9.9 | 9.1 | 9 | 13.6 | 12.3 | 11 |
| 3 Months | 9 Months | 12 Months | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Retail sales by model, k units | Jul–Sep 2024 |
Jul–Sep 2023 |
∆% | Jan–Sep 2024 |
Jan–Sep 2023 |
∆% | LTM | 2023 | ∆% |
| BEV | |||||||||
| EX30 | 27.2 | — | — | 41.8 | — | — | 75.6 | 0.6 | — |
| EX40 | 10.7 | 14.5 | –26 | 75.0 | 53.5 | 40 | 64.0 | 75.7 | –15 |
| EC40 | 4.5 | 6.9 | –35 | 15.4 | 27.2 | –43 | 25.3 | 37.1 | –32 |
| EM90 | 0.3 | — | — | 1.3 | — | — | 13 | — | — |
| EX90 | 0.1 | — | — | 0.1 | — | — | 0.1 | — | — |
| Non-BEV | |||||||||
| XC60 | 48.4 | 55.0 | –12 | 164.1 | 161.0 | 2 | 231.8 | 228.6 | 1 |
| XC40 | 27.7 | 32.4 | –15 | 88.0 | 92.9 | –5 | 120.0 | 125.0 | –4 |
| XC90 | 24.0 | 25.5 | –6 | 77.2 | 77.0 | — | 107.7 | 107.5 | — |
| S60 | 11.1 | 10.8 | 2 | 34.1 | 28.7 | 19 | 45.5 | 40.2 | 13 |
| S90 | 9.1 | 13.5 | –33 | 30.9 | 36.6 | –16 | 43.6 | 49.3 | –12 |
| V60 | 7.5 | 5.9 | 27 | 26.2 | 22.2 | 18 | 34.5 | 30.4 | 13 |
| V90 | 2.3 | 3.0 | –23 | 7.0 | 10.2 | –31 | 11.0 | 14.2 | –22 |
| Total | 172.8 | 167.5 | 3 | 560.9 | 509.2 | 10 | 760.5 | 708.7 | 7 |
V60 and V90 include the cross-country versions.
INCOME AND RESULT
The comparative figures refer to the consolidated income statement of the third quarter 2023 if not otherwise stated.
Volvo Cars' revenue amounted to SEK 92.8 (92.0) bn. Wholesale volumes increased by 3% to 171.3 (165.6) thousand cars, resulting in a SEK 5.0 bn increase in revenue. However, the revenue was impacted by unfavourable foreign exchange rate effects of SEK –1.8 bn, deferred revenue related to rental sales amounting to SEK –1.6 bn, as well as sales channel mix and pricing amounting to SEK –1.6. See complete revenue bridge below.
Gross income increased by 5% to SEK 19.0 (18.1) bn, resulting in a gross margin of 20.5 (19.6)%. The gross margin increased mainly due to lower material costs. Gross income was impacted by sales mix and pricing amounting to SEK –2.4 bn. Foreign exchange rate effects in cost of sales were positive amounting to SEK 1.2 bn. The net effect of foreign exchange rates in gross income was negative amounting to SEK –0.6 bn.
Research and development expenses increased by 17% to SEK –3.4 (–2.9) bn, primarily related to less projects reaching capitalisation phase as a percentage of total spend. For details regarding research and development expenses, see the Research and development table on page 11. Selling expenses remained consistent with the prior year and amounted to SEK –6.6 (–6.6) bn. Similarly, administrative expenses amounted to SEK –3.0 (–2.9) bn.
Other operating income and expenses decreased to SEK –0.3 (0.5) bn mainly related to negative foreign exchange rate effects from the valuation of operating assets and liabilities. Share of income in JVs and associates increased to SEK 0.1 (–1.7) bn, mainly as an effect of less recognised operational losses from Polestar.
Operating income (EBIT) excluding share of income in JVs and associates, decreased to SEK 5.7 (6.1) bn, corresponding to a margin of 6.2 (6.7)%, impacted by unfavourable foreign exchange rate effects from the valuation of operating assets and liabilities, as well as higher research and development expenses. EBIT amounted to SEK 5.8 (4.5) bn, resulting in an EBIT margin of 6.2 (4.8)%. The exchange rate effects had a negative impact on EBIT of SEK –1.2 bn, see the table below.
Net financial items amounted to SEK 0.3 (0.3) bn. The effective tax rate decreased to 28.0 (31.8)%, mainly due to lower non-tax deductible loss related to share of income in JVs and associates, offset by increased withholding tax cost on dividends. Net income was SEK 4.4 (3.2) bn and 4.7 (3.5)% in relation to revenue. Basic earnings per share amounted to SEK 4.33 (3.34).
| Items affecting comparability, SEK bn | Jul–Sep 2024 |
Jul–Sep 2023 |
|---|---|---|
| Restructuring costs | — | 0.3 |
| Total | — | 0.3 |
| Changes to Revenue, SEK bn | Jul–Sep | |||
|---|---|---|---|---|
| Revenue Q3 2023 | 92.0 | |||
| Volume | 5.0 | |||
| Deferred revenue | –1.6 | |||
| Sales mix and pricing | –1.6 | |||
| Sale of licences | –0.1 | |||
| Foreign exchange rates | –1.8 | |||
| Contract manufacturing | –1.2 | |||
| Other1) | 2.1 | |||
| Revenue Q3 2024 | 92.8 | |||
| Change, % | 1 |
1) Including used cars, earned emissions credits, parts and accessories.
| Changes to Operating income, SEK bn | Jul–Sep |
|---|---|
| EBIT Q3 2023 | 4.5 |
| Volume | — |
| Sales mix and pricing | –2.4 |
| Government grants | –0.1 |
| Sale of licences | –0.1 |
| Foreign exchange rates | –1.2 |
| Share of income in JVs and associates | 1.8 |
| Items affecting comparability | –0.3 |
| Other2) | 3.6 |
| EBIT Q3 2024 | 5.8 |
| Change, % | 30 |
2) Mainly including cost efficiencies, used cars, emissions credits and parts and accessories.
| 3 Months | Full year | ||||||
|---|---|---|---|---|---|---|---|
| Research and development, SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
∆% | Jan–Sep 2024 |
Jan–Sep 2023 |
∆% | 2023 |
| Research and development spending | –6,554 | –5,894 | 11.2 | –20,420 | –19,615 | 4.1 | –26,943 |
| Capitalised development costs | 4,183 | 4,151 | 0.8 | 13,708 | 13,941 | –1.7 | 18,912 |
| Amortisation of research and development | –1,0321) | –1,166 | –11.5 | –5,2431) | –3,496 | 50.0 | –4,853 |
| Research and development expenses | –3,403 | –2,909 | 17.0 | –11,955 | –9,170 | 30.4 | –12,884 |
1) Ready for use dates for EX90 and contract manufactured PS3 assets, based on the same platform, were reassessed during the quarter due to adjusted customer car production. The adjustment resulted in a decrease in Research and development expenses in the quarter with SEK 1,006 m.
Revenue & Gross Margin
Operating Income (EBIT) & EBIT Margin
CASH FLOW
The comparative figures for the cash flow items refer to the consolidated cash flow statement for the third quarter 2023 unless otherwise stated. The comparative figures for the balance sheet items refer to the consolidated balance sheets of December 31, 2023 unless otherwise stated.
Total cash and cash equivalents, including marketable securities, amounted to SEK 43.5 (57.8) bn. Net cash was SEK 14.5 (27.5) bn, the decrease was largely driven by investing activities. Liquidity amounted to SEK 67.4 (75.0) bn, including undrawn credit facilities of SEK 23.9 (17.2) bn.
Cash flow from operating activities
Cash flow from operating activities amounted to SEK 9.2 (10.1) bn. The amount consists of operating income of SEK 5.8 (4.5) bn, adjusted for depreciation and amortisation of SEK 4.6 (4.2) bn, together with paid income tax of SEK –1.3 (–1.0) bn.
The change in working capital amounted to SEK 2.9 (1.0) bn, mainly driven by seasonal inventory decrease of SEK 2.9 (–4.5) bn, but also by changes in other working capital due VAT receivables of SEK –2.3 (–0.4) bn.
Cash flow from investing activities
Cash flow from investing activities amounted to SEK –9.6 (–8.4) bn. Cash flow from investments in tangible assets amounted to SEK –5.1 (–3.2) bn, mainly driven by the industrial structure to prepare for future products.
Investments in intangible assets amounted to SEK –4.1 (–4.5) bn, as a result of continuous investments in new and upcoming car models and new technology, such as electrification technology and Advanced Driver Assistance Systems.
Cash flow from financing activities
Cash flow from financing activities amounted to SEK 3.4 (–0.2) bn. The changes were mainly related to matured marketable securities of SEK 3.5 bn.
Cash flow from Operating and Investing activities
| 3 Months | 9 Months | Full year | |||
|---|---|---|---|---|---|
| Cash flow statement, SEK bn | Jul–Sep 2024 | Jul–Sep 2023 | Jan–Sep 2024 | Jan–Sep 2023 | 2023 |
| Cash flow from operating activities | 9.2 | 10.1 | 21.1 | 24.7 | 42.9 |
| Cash flow from investing activities | –9.6 | –8.4 | –33.5 | –39.7 | –51.8 |
| Cash flow from operating and investing activities | –0.4 | 1.7 | –12.5 | –15.0 | –9.0 |
| Cash flow from financing activities | 3.4 | –0.2 | 6.8 | 3.9 | –5.3 |
| Cash flow for the period | 3.0 | 1.5 | –5.6 | –11.1 | –14.2 |
First nine months
INCOME AND RESULT
Volvo Cars' revenue amounted to SEK 288.1 (289.9) bn, supported by wholesale volumes, which increased by 9% to 575.5 (528.4) thousand cars. However, revenue was impacted by higher deferred revenue related to rental sales, lower contract manufacturing, sales channel mix and pricing, as well as unfavourable foreign exchange rate effects.
Gross income increased to SEK 60.3 (54.6) bn, resulting in a gross margin of 20.9 (18.8)%, an increase mainly due to lower material cost, as well as increased volume.
Operating income (EBIT) excluding share of income in JVs and associates, increased to SEK 20.7 (18.9) bn, corresponding to a margin of 7.2 (6.5)%. EBIT amounted to SEK 18.5 (14.6) bn, resulting in an EBIT margin of 6.4 (5.0)%. The exchange rate effects had a negative impact on EBIT of SEK –1.8 bn.
Net financial items decreased to SEK 0.5 (0.9) bn. The effective tax rate decreased to 28.3 (30.7)%, mainly due to lower non-tax deductible loss related to share of income in JVs and associates and associates, offset by increased withholding tax cost on dividends. Net income was SEK 13.6 (10.7) bn and 4.7 (3.7)% in relation to revenue. Basic earnings per share amounted to SEK 1.41 (1.01).
CASH FLOW
Total cash and cash equivalents, including marketable securities, amounted to SEK 43.5 (57.8) bn. Net cash was SEK 14.5 (27.5) bn, the decrease was largely driven
by investing activities. Liquidity amounted to SEK 67.4 (75.0) bn, including undrawn credit facilities of SEK 23.9 (17.2) bn.
Cash flow from operating activities was positive and amounted to SEK 21.1 (24.7) bn. Working capital amounted to SEK –9.7 (–4.0) bn, mainly impacted by inventory due to increased ramp up of EX30 and cars under repurchase contracts.
Cash flow from investing activities amounted to SEK –33.5 (–39.8) bn. Volvo Cars continued to invest in the industrial structure, new technology, upcoming car models and the transformation into a fully electric car company.
Cash flow from financing activities amounted to SEK 6.8 (3.9) bn, mainly related to matured marketable securities.
EQUITY
Total equity increased to SEK 143.0 (130.5) bn, resulting in an equity ratio of 37.0 (36.6)%. The change is mainly attributable to a positive net income of SEK 13.6 bn, partially offset by a negative effect on other comprehensive income of SEK –0.6 bn.
The change in other comprehensive income is related to a negative change in fair value of cash flow hedge reserve related to currency and commodity price risks of SEK –0.6 bn (net of tax). The change in value of cash flow hedges is mainly due to depreciated SEK compared to most of the major currencies and increased prices for raw material.
| Items affecting comparability, SEK bn | Jan–Sep 2024 |
Jan–Sep 2023 |
|---|---|---|
| Restructuring costs | — | –0.6 |
| Total | — | –0.6 |
| Changes to Revenue, SEK bn | Jan–Sep |
|---|---|
| Revenue in 2023 | 289.9 |
| Volume | 25.7 |
| Deferred revenue | –13.8 |
| Sales mix and pricing | –5.6 |
| Sale of licences | 0.0 |
| Foreign exchange rates | –4.1 |
| Contract manufacturing | –8.7 |
| Other1) | 4.7 |
| Revenue in 2024 | 288.1 |
| Change, % | –1 |
1) Including used cars, earned emissions credits, parts and accessories.
| Changes to Operating income, SEK bn | Jan–Sep |
|---|---|
| EBIT in 2023 | 14.6 |
| Volume | 1.6 |
| Sales mix and pricing | –4.1 |
| Government grants | –0.2 |
| Sale of licenses | –0.1 |
| Foreign exchange rates | –1.8 |
| Share of income in JVs and associates | 2.1 |
| Items affecting comparability | 0.6 |
| Other2) | 5.8 |
| EBIT in 2024 | 18.5 |
| Change, % | 27 |
2) Mainly including cost efficiencies, used cars, emissions credits and parts and accessories.
Other Information
PARENT COMPANY
The parent company does not conduct any operations and has no employees. The income statements and balance sheets for the parent company are presented on page 25.
EMPLOYEES
During the first nine months of 2024, Volvo Car Group employed 42.6 (43.9) thousand full-time employees (FTEs) and 3.6 (3.9) thousand agency personnel. These decreases are mainly due to the cost-efficiency initiatives started during the first half of 2023.
RISKS AND UNCERTAINTY FACTORS
To ensure that Volvo Cars is able to achieve short- and longterm objectives, enterprise risk management is part of daily activities at Volvo Cars. For a more in-depth description of risks related to Volvo Cars, see the Volvo Car Group's Annual Report 2023 page 51. We consider the risk and uncertainty factors to remain the same as described in the annual report except for the following update:
Macroeconomics and geopolitical uncertainty
The uncertain macro and geopolitical environment continues, including elevated interest rates, raw material price volatility, ongoing geopolitical complexity leading to new legislations and regulatory changes such as subsidies, tariffs and duties or application of these by relevant authorities. The uncertainties in the financial markets are still high. The risks of further impact on demand from higher interest rate levels and lower consumer confidence, remain at an elevated level.
Consolidated Income Statements
| SEK m Note |
Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Revenue | 2 92,783 |
92,045 | 288,115 | 289,902 | 399,343 |
| Cost of sales | –73,747 | –73,968 | –227,825 | –235,307 | –321,916 |
| Gross income | 19,036 | 18,077 | 60,290 | 54,595 | 77,427 |
| Research and development expenses | –3,403 | –2,909 | –11,955 | –9,170 | –12,884 |
| Selling expenses | –6,623 | –6,576 | –19,184 | –18,977 | –26,056 |
| Administrative expenses | –3,001 | –2,945 | –8,727 | –9,179 | –12,539 |
| Other operating income and expenses | –299 | 501 | 297 | 1,621 | –381 |
| Share of income in joint ventures and associates |
80 | –1,690 | –2,256 | –4,339 | –5,628 |
| Operating income | 5,790 | 4,458 | 18,465 | 14,551 | 19,939 |
| Interest income and similar credits | 479 | 658 | 1,750 | 1,755 | 2,495 |
| Interest expenses and similar charges | –385 | –290 | –1,431 | –842 | –1,120 |
| Other financial income and expenses | 3 170 |
–104 | 190 | 15 | –454 |
| Income before tax | 6,054 | 4,722 | 18,974 | 15,479 | 20,860 |
| Income tax | –1,698 | –1,503 | –5,377 | –4,745 | –6,794 |
| Net income | 4,356 | 3,219 | 13,597 | 10,734 | 14,066 |
| Net income attributable to | |||||
| Owners of the parent company | 4,208 | 3,001 | 12,898 | 9,944 | 13,053 |
| Non-controlling interests | 148 | 218 | 699 | 790 | 1,013 |
| Basic earnings per share, SEK | 5 1.41 |
1.01 | 4.33 | 3.34 | 4.38 |
| Diluted earnings per share, SEK | 5 1.41 |
1.01 | 4.33 | 3.34 | 4.38 |
Consolidated Comprehensive Income
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Net income for the period | 4,356 | 3,219 | 13,597 | 10,734 | 14,066 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to income statement: | |||||
| Remeasurements of provisions for post-employment benefits | 109 | 1,555 | 35 | 2,412 | –1,815 |
| Tax on items that will not be reclassified to income statement | –10 | –331 | –3 | –463 | 424 |
| Items that have been or may be reclassified subsequently to income statement: |
|||||
| Translation difference on foreign operations | 32 | –751 | 3 | 36 | –1,240 |
| Translation difference of hedge instruments of net investments in foreign operations |
93 | 211 | –148 | –396 | 131 |
| Change in fair value of cash flow hedge related to currency and commodity price risks |
1,461 | 865 | –688 | –2,315 | 1,976 |
| Tax on items that have been or may be reclassified to income statement |
–320 | –222 | 172 | 557 | –435 |
| Other comprehensive income, net of income tax | 1,365 | 1,327 | –629 | –169 | –959 |
| Total comprehensive income for the period | 5,721 | 4,546 | 12,968 | 10,565 | 13,107 |
| Total comprehensive income attributable to | |||||
| Owners of the parent company | 5,631 | 4,309 | 12,195 | 9,808 | 12,343 |
| Non-controlling interests | 90 | 237 | 773 | 757 | 764 |
| 5,721 | 4,546 | 12,968 | 10,565 | 13,107 |
Consolidated Balance Sheets
| SEK m | Note | 30 Sep 2024 |
31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 81,166 | 72,104 | |
| Tangible assets | 97,734 | 84,113 | |
| Financial assets | |||
| Investments in joint ventures and associates | 4 | 11,855 | 14,142 |
| Other securities holdings1) | 3 | 12,035 | 11,943 |
| Other interest-bearing receivables, non-current1) | 3 | 1,571 | 1,363 |
| Derivative assets, non-current | 3 | 1,820 | 2,094 |
| Deferred tax assets | 11,103 | 10,135 | |
| Other non-current assets1) | 3,974 | 3,513 | |
| Total non-current assets | 221,258 | 199,407 | |
| Current assets | |||
| Inventories | 78,711 | 57,058 | |
| Financial assets | |||
| Accounts receivable1) | 4 | 23,878 | 19,257 |
| Other interest-bearing receivables, current1) | 3 | 1,295 | 1,483 |
| Derivative assets, current | 3 | 2,186 | 1,988 |
| Marketable securities | 3 | 565 | 9,918 |
| Cash and cash equivalents | 3 | 42,965 | 47,861 |
| Current tax assets | 2,342 | 997 | |
| Other current assets1) | 13,243 | 18,393 | |
| Total current assets | 165,185 | 156,955 | |
| TOTAL ASSETS | 386,443 | 356,362 | |
| EQUITY & LIABILITIES | |||
| Equity | |||
| Equity attributable to owners of the parent company | 138,361 | 126,371 | |
| Non-controlling interests | 4,676 | 4,114 | |
| Total equity | 143,037 | 130,485 | |
| Non-current liabilities | |||
| Provisions for post-employment benefits | 7,627 | 7,610 | |
| Provisions, non-current | 8,695 | 7,582 | |
| Financial liabilities | |||
| Liabilities to credit institutions, non-current | 3 | 4,164 | 4,562 |
| Bonds, non-current | 3 | 18,618 | 18,087 |
| Other interest-bearing liabilities, non- current1) | 3 | 2,275 | 1,662 |
| Derivative liabilities, non-current | 3 | 402 | 424 |
| Lease liabilities, non-current | 6,136 | 4,786 | |
| Contract liabilities to customers, non-current | 9,312 | 8,148 | |
| Deferred tax liabilities | 12,500 | 8,293 | |
| Other non-current liabilities1) | 2,027 | 3,726 | |
| Total non-current liabilities | 71,756 | 64,881 | |
| Current liabilities | |||
| Provisions, current | 13,094 | 13,117 | |
| Financial liabilities | |||
| Accounts payable | 4 | 65,693 | 62,304 |
| Liabilities to credit institutions, current | 3 | 838 | 937 |
| Bonds, current | 3 | 5,643 | 6,660 |
| Other interest-bearing liabilities, current1) | 3 | 17,933 | 7,065 |
| Derivative liabilities, current | 3 | 1,408 | 1,055 |
| Lease liabilities, current | 1,853 | 1,242 | |
| Contract liabilities to customers, current | 29,727 | 30,817 | |
| Current tax liabilities | 1,098 | 1,607 | |
| Other current liabilities1) | 4 | 34,363 | 36,193 |
| Total current liabilities | 171,650 | 160,996 | |
| TOTAL EQUITY & LIABILITIES | 386,443 | 356,362 |
1) In the first quarter 2024, Volvo Cars changed the presentation of financial items. Presentation of the figures for 31 December 2023 have been adjusted accordingly. The change has no impact on EBIT.
Consolidated Statement of Changes in Equity
| SEK m | 30 Sep 2024 |
31 Dec 2023 |
|---|---|---|
| Opening balance | 130,485 | 117,278 |
| Net income for the period | 13,597 | 14,066 |
| Other comprehensive income, net of income tax | –629 | –959 |
| Total comprehensive income | 12,968 | 13,107 |
| Transactions with owners | ||
| Divestment of non-controlling interest1) | –210 | — |
| Distribution of shares2) | –92 | — |
| Acquisition of treasury shares | –190 | — |
| Share-based payments | 76 | 109 |
| Change in the Group's composition | — | –9 |
| Transactions with owners | –416 | 100 |
| Closing balance | 143,037 | 130,485 |
| Attributable to | ||
| Owners of the parent company | 138,361 | 126,371 |
| Non-controlling interests | 4,676 | 4,114 |
| Closing balance | 143,037 | 130,485 |
1) Refers to the divestment of non-controlling interest in HaleyTek AB.
2) Refers to distribution of Polestar shares.
Consolidated Statement of Cash Flows
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Operating income | 5,790 | 4,458 | 18,465 | 14,551 | 19,939 |
| Depreciation and amortisation of non-current assets | 4,579 | 4,193 | 15,972 | 12,527 | 17,449 |
| Dividends received from joint ventures and associates | 100 | — | 213 | 88 | 88 |
| Interest and similar items received | 479 | 658 | 1,750 | 1,755 | 2,495 |
| Interest and similar items paid | –156 | –253 | –1,369 | –1,042 | –1,710 |
| Other financial items | 9 | –29 | –728 | 40 | 178 |
| Income tax paid | –1,259 | –951 | –3,766 | –4,078 | –4,486 |
| Adjustments for other non-cash items | –3,233 | 1,039 | 229 | 4,899 | 6,087 |
| 6,309 | 9,115 | 30,766 | 28,740 | 40,040 | |
| Movements in working capital | |||||
| Change in inventories | 2,903 | –4,549 | –21,182 | –12,046 | –11,341 |
| Change in accounts receivable | 335 | 4,195 | –4,533 | 4,150 | 4,750 |
| Change in accounts payable | –857 | –802 | 4,292 | –5,274 | –2,918 |
| Change in provisions | 2,069 | 472 | –188 | –2,611 | –1,914 |
| Change in contract liabilities to customers | 788 | 2,058 | 1,907 | 6,131 | 8,707 |
| Change in other working capital | –2,335 | –365 | 9,992 | 5,637 | 5,543 |
| Cash flow from movements in working capital | 2,903 | 1,009 | –9,712 | –4,013 | 2,827 |
| Cash flow from operating activities | 9,212 | 10,124 | 21,054 | 24,727 | 42,867 |
| INVESTING ACTIVITIES | |||||
| Investments in shares and participations | –1,041 | –273 | –2,363 | –820 | –1,151 |
| Divestment in shares and participations | — | –178 | –217 | –178 | –178 |
| Loans to affiliated companies | –17 | –535 | –76 | –9,696 | –11,990 |
| Investments in intangible assets | –4,075 | –4,514 | –14,695 | –15,453 | –20,680 |
| Investments in tangible assets | –5,091 | –3,202 | –16,977 | –13,989 | –18,485 |
| Disposal of tangible assets | 611 | 232 | 791 | 373 | 642 |
| Other | — | 75 | — | — | — |
| Cash flow from investing activities | –9,613 | –8,395 | –33,537 | –39,763 | –51,842 |
| Cash flow from operating and investing activities | –401 | 1,729 | –12,483 | –15,036 | –8,975 |
| FINANCING ACTIVITIES | |||||
| Proceeds from credit institutions | –27 | –39 | 34 | 1,546 | 3,970 |
| Proceeds from bond issuance | — | — | 5,857 | 1,500 | 1,500 |
| Acquisition of treasury shares | –190 | — | –190 | — | — |
| Repayment of bond | — | — | –6,936 | –2,000 | –2,000 |
| Repayment of liabilities to credit institutions | –59 | 17 | –562 | –359 | –673 |
| Repayment of interest-bearing liabilities | –526 | –423 | –1,445 | –1,276 | –1,747 |
| Investments in marketable securities | — | –335 | — | –695 | –10,792 |
| Matured marketable securities | 3,474 | 335 | 9,700 | 4,116 | 4,115 |
| Other | 692 | 232 | 376 | 1,056 | 376 |
| Cash flow from financing activities | 3,364 | –213 | 6,834 | 3,888 | –5,251 |
| Cash flow for the period | 2,963 | 1,516 | –5,649 | –11,148 | –14,226 |
| Cash and cash equivalents at beginning of period | 39,911 | 51,701 | 47,861 | 63,743 | 63,743 |
| Exchange difference on cash and cash equivalents | 91 | –451 | 753 | 171 | –1,656 |
| Cash and cash equivalents at end of period | 42,965 | 52,766 | 42,965 | 52,766 | 47,861 |
NOTE 1 – Accounting policies
This interim report has been prepared in accordance with IAS 34 – Interim Financial Reporting and the Swedish Annual Accounts Act (1995:1554), with the required disclosures made in the notes to the financial statements and elsewhere in the interim report. The Volvo Car Group applies International Financial Reporting Standards (IFRS) as endorsed by the European Union. The parent company applies RFR 2 – Reporting for legal entities and the Swedish Annual Accounts Act. The accounting principles in this report are, in all material aspects, consistent with those described in Volvo Car Group's Annual Report 2023 (available at investors.volvocars.com).
The IASB has published amendments to standards effective on or after 1 January 2024. These amendments have not had a material impact on the financial statements.
NOTE 2 – Revenue
Revenue allocated to geographical regions
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Europe | 47,400 | 39,960 | 149,630 | 130,551 | 184,894 |
| of which Sweden1) | 12,887 | 10,382 | 33,809 | 35,125 | 47,029 |
| of which United Kingdom | 8,477 | 4,663 | 21,962 | 14,742 | 21,661 |
| of which Germany | 6,973 | 5,681 | 20,824 | 16,475 | 24,942 |
| US | 17,700 | 16,952 | 50,212 | 56,114 | 75,172 |
| China | 13,033 | 18,811 | 45,244 | 55,036 | 73,545 |
| Other markets | 14,650 | 16,322 | 43,029 | 48,201 | 65,732 |
| of which South Korea | 1,690 | 1,941 | 5,198 | 6,111 | 8,336 |
| of which Japan | 1,576 | 1,798 | 4,401 | 6,300 | 7,673 |
| Total | 92,783 | 92,045 | 288,115 | 289,902 | 399,343 |
Revenue allocated to category
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Sales of new cars | 67,121 | 68,465 | 220,549 | 221,156 | 307,549 |
| Sales of used cars | 7,008 | 4,368 | 17,914 | 12,361 | 18,505 |
| Sales of parts and accessories | 9,556 | 9,235 | 28,628 | 27,781 | 37,170 |
| Revenue from subscription, leasing and rental business | 1,820 | 1,603 | 4,750 | 4,129 | 5,463 |
| Sales of licences and royalties | 164 | 252 | 630 | 660 | 798 |
| Contract manufacturing | 5,408 | 6,781 | 10,147 | 19,166 | 22,357 |
| Emissions credits | 174 | 164 | 781 | 439 | 910 |
| Other revenue | 1,532 | 1,177 | 4,716 | 4,210 | 6,591 |
| Total | 92,783 | 92,045 | 288,115 | 289,902 | 399,343 |
1) Includes the Contract manufacturing sales channel.
NOTE 3 – Financial instruments
Valuation principles and classification of financial instruments, as described in the Volvo Car Group's Annual Report 2023, Note 21 – Financial instruments and financial risks and Note 22 – Marketable securities and cash and cash equivalents, have been applied consistently throughout the reporting period.
The table below presents financial instruments by category and measurement level.
| Measure ment level |
30 Sep 2024 | 31 Dec 2023 | |||
|---|---|---|---|---|---|
| Carrying value |
Fair value | Carrying value |
Fair value | ||
| Financial assets carried at fair value through profit or loss | |||||
| Other securities holdings – convertible loan1) | 2 | 10,618 | 10,618 | 10,270 | 10,270 |
| Other securities holdings – equity instruments2) | 3 | 1,372 | 1,372 | 1,507 | 1,507 |
| Other securities holdings – equity instruments6) | 1 | 45 | 45 | 166 | 166 |
| Derivatives for hedging of currency risk | 2 | 441 | 441 | 411 | 411 |
| Derivatives for hedging of commodity price risk | 2 | 8 | 8 | — | — |
| Derivatives for hedging of interest rate risk | 2 | 216 | 216 | 4 | 4 |
| Interest-bearing securities3) | 2 | 894 | 894 | 50 | 50 |
| 13,594 | 13,594 | 12,408 | 12,408 | ||
| Financial assets carried at fair value through profit or loss designated hedging instruments |
|||||
| Derivatives for hedging of currency risk | 2 | 2,507 | 2,507 | 3,557 | 3,557 |
| Derivatives for hedging of commodity price risk | 2 | 834 | 834 | 110 | 110 |
| 3,341 | 3,341 | 3,667 | 3,667 | ||
| Financial assets carried at amortised cost | |||||
| Accounts receivable6) | — | 23,878 | 23,878 | 19,257 | 19,257 |
| Other interest-bearing assets, non-current and current6) | — | 2,866 | 2,881 | 2,846 | 2,928 |
| Time deposits4) | — | 4,563 | 4,586 | 16,533 | 16,602 |
| Cash and cash equivalents | — | 38,073 | 38,073 | 41,197 | 41,197 |
| 69,380 | 69,418 | 79,833 | 79,984 | ||
| Financial liabilities carried at fair value through profit or loss | |||||
| Derivatives for hedging of currency risk | 2 | 100 | 100 | 56 | 56 |
| Derivatives for hedging of commodity price risk | 2 | 48 | 48 | — | — |
| Derivatives for hedging of interest rate risk | 2 | 174 | 174 | 297 | 297 |
| 322 | 322 | 353 | 353 | ||
| Financial liabilities carried at fair value through profit or loss designated hedging instruments |
|||||
| Derivatives for hedging of currency risk | 2 | 856 | 856 | 865 | 865 |
| Derivatives for hedging of commodity price risk | 2 | 632 | 632 | 261 | 261 |
| 1,488 | 1,488 | 1,126 | 1,126 | ||
| Financial liabilities carried at amortised cost | |||||
| Accounts payable | — | 65,693 | 65,693 | 62,304 | 62,304 |
| Bonds and liabilities to credit institutions, non-current and current5) | — | 29,263 | 29,206 | 30,246 | 30,224 |
| Other interest-bearing liabilities, non-current and current6) | — | 20,208 | 20,208 | 8,727 | 8,727 |
| 115,164 | 115,107 | 101,277 | 101,255 |
1) The value of the conversion option connected to the convertible loan receivable to the Polestar Group is nil.
2) Equity instruments at level 3 include earn-out rights in Polestar Group amounted to SEK — (577) m and unlisted warrants and earn-out rights in the listed company Luminar Technologies Inc amounted to SEK 2 (42) m in the balance sheet. Changes in the equity instruments at level 3 are recognised in the income statement as Share of income in joint ventures and associates amounted to SEK –580 (–2,654) m and Other financial income and expenses amounted to SEK 278 (–217) m.
3) Whereof SEK 894 (50) m are reported as cash and cash equivalents.
4) Whereof SEK 565 (9,918) m are reported as marketable securities in the balance sheet and SEK 3,998 (6,615) m are reported as cash and cash equivalents.
5) The carrying amount of the bonds and liabilities to credit institutions including a fair value adjustment amounting to SEK 232 (–46) m, which relates to the fair value hedging.
6) The 2023 figures have been adjusted to reflect the reclassification of certain items in the balance sheet, see footnote 1 to the Consolidated balance sheet.
NOTE 4 – Related Party transactions
Volvo Car Group has a close collaboration with its Related Parties. The main part of the transactions is related to sales and purchases of cars, licences of technology, contract manufacturing and purchases of components. Related Parties include companies outside the Volvo Car Group, but within the Geely sphere of companies as well as other companies, such as joint ventures and associates. All transactions with Related Parties are performed at arm's length.
Significant events and agreements with Related Parties during the third quarter
In August, Volvo Cars acquired the remaining 40% of the shares in HaleyTek AB from ECARX Technology Ltd and HaleyTek is thereafter a wholly-owned subsidiary to Volvo Cars. Purchase consideration amounted to SEK 210 m.
Transactions with Related Parties
Related Party transactions are specified in the below tables. The nature of significant transactions with Related Parties are provided in Note 4 - Related Party transactions in the Annual Report 2023.
Related Party transactions specified below but not previously described in the annual report are:
- Sales to Volvo Car Financial Services UK Ltd, mainly sales of cars.
- Purchases from Zhejiang Haoqing Automobile Manufacturing Co., Ltd, mainly related to EM90 and EX30.
- Purchases from Geely Changxing Automatic Transmission Co., Ltd, mainly related to gearboxes.
Sales of goods, services and other
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Related companies1)2) | 6,287 | 8,025 | 13,077 | 22,935 | 27,253 |
| of which Polestar Automotive Holding UK Group | 5,804 | 7,648 | 11,760 | 21,081 | 24,939 |
| of which Ningbo Fuhong Auto Sales Co., Ltd | 279 | 260 | 736 | 1,270 | 1,467 |
| Associated companies and joint ventures | 2,430 | 761 | 6,464 | 1,530 | 2,705 |
| of which Volvo Car Financial Services UK Ltd | 2,080 | 417 | 5,433 | 497 | 1,337 |
Purchases of goods, services and other
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Related companies1)2) | –10,803 | –6,298 | –45,873 | –22,734 | –33,519 |
| of which Zhejiang Geely Automobile Co.,Ltd | –5,102 | 18 | –25,373 | — | –3,169 |
| of which Powertrain Engineering Sweden AB | –2,913 | –2,934 | –11,243 | –9,299 | –13,517 |
| of which Zhangjiakou Aurobay Powertrain Manufacturing Co., Ltd |
–1,052 | –1,540 | –2,998 | –6,050 | –7,304 |
| of which Zhejiang Haoqing Automobile Manufacturing Co., Ltd |
–440 | — | –1,742 | — | — |
| of which Geely Changxing Automatic Transmission Co., Ltd |
–481 | –471 | –1,259 | –1,190 | –1,420 |
| of which Viridi E-Mobility Technology (Ningbo) Co., Ltd |
–410 | –469 | –1,110 | –1,660 | –2,079 |
| of which Ningbo Geely Automobile Research & Development Co., Ltd |
3 | –487 | –462 | –1,487 | –1,667 |
| Associated companies and joint ventures | –806 | –777 | –1,960 | –2,330 | –2,958 |
| Receivables3) | Payables3) | |||
|---|---|---|---|---|
| SEK m | 30 Sep 2024 |
31 Dec 2023 |
30 Sep 2024 |
31 Dec 2023 |
| Related companies1)2) | 20,359 | 21,534 | 12,348 | 14,941 |
| Associated companies and joint ventures | 2,199 | 2,545 | 697 | 627 |
1) Related companies are companies within the Geely sphere of companies. Joint ventures and associated companies within the Geely sphere are presented as Related companies.
2) Including contract manufacturing.
3) Non-current part of receivables amounts to SEK 12,524 (11,543) m. Non-current part of payables amounts to SEK 2 (4) m.
NOTE 5 – Earnings per share
| Basic earnings per share, SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Net income attributable to owners of the parent company |
4,208 | 3,001 | 12,898 | 9,944 | 13,053 |
| Net income attributable to owners of ordinary shares in the parent company |
4,208 | 3,001 | 12,898 | 9,944 | 13,053 |
| Weighted average number of ordinary shares outstanding, basic1) |
2,975,190,846 | 2,979,524,179 | 2,978,079,735 | 2,979,524,179 | 2,979,524,179 |
| Basic earnings per share, SEK | 1.41 | 1.01 | 4.33 | 3.34 | 4.38 |
| Diluted earnings per share, SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Net income in basic earnings per share | 4,208 | 3,001 | 12,898 | 9,944 | 13,053 |
| Net income in diluted earnings per share | 4,208 | 3,001 | 12,898 | 9,944 | 13,053 |
| Weighted average number of ordinary shares outstanding, basic1) |
2,975,190,846 | 2,979,524,179 | 2,978,079,735 | 2,979,524,179 | 2,979,524,179 |
| Dilutive effect for share-based payment programmes |
2,388,606 | 1,157,192 | 1,958,404 | 643,815 | 778,275 |
| Weighted average number of ordinary shares outstanding, diluted |
2,977,579,452 | 2,980,681,371 | 2,980,038,139 | 2,980,167,994 | 2,980,302,454 |
| Diluted earnings per share, SEK | 1.41 | 1.01 | 4.33 | 3.34 | 4.38 |
1) The weighted average number of outstanding shares takes into account the weighted average effect of changes in treasury shares during the period.
NOTE 6 – Significant events after the period
No significant events have occurred after the period.
The section Risks and uncertainty factors on page 14 contains information on Volvo Cars' assessments of the global environment on the Group.
Condensed Parent Company Income Statements
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Jan–Sep 2024 |
Jan–Sep 2023 |
Full year 2023 |
|---|---|---|---|---|---|
| Administrative expenses | –8 | –6 | –28 | –18 | –30 |
| Operating loss | –8 | –6 | –28 | –18 | –30 |
| Interest income and similar credits | 372 | 370 | 1,209 | 1,036 | 1,452 |
| Interest expenses and similar charges | –269 | –208 | –745 | –605 | –825 |
| Other financial income and expenses1) | –5 | –6 | –17 | –19 | 2,979 |
| Income before tax | 90 | 150 | 419 | 394 | 3,576 |
| Income tax | –16 | –31 | –80 | –81 | –95 |
| Net income | 74 | 119 | 339 | 313 | 3,481 |
1) In December 2023, a dividend of SEK 3,000 m was received from subsidiary.
Other comprehensive income and net income are consistent since there are no items in other comprehensive income.
Condensed Parent Company Balance Sheets
| SEK m | 30 Sep 2024 |
31 Dec 2023 |
|---|---|---|
| ASSETS | ||
| Non-current assets | 42,667 | 42,367 |
| Current assets | 15,960 | 25,999 |
| TOTAL ASSETS | 58,627 | 68,366 |
| EQUITY & LIABILITIES | ||
| Equity | ||
| Restricted equity1) | 61 | 61 |
| Non-restricted equity2) | 30,761 | 39,844 |
| Total equity | 30,822 | 39,905 |
| Non-current liabilities | 21,632 | 21,338 |
| Current liabilities | 6,173 | 7,123 |
| Total liabilities | 27,805 | 28,461 |
| TOTAL EQUITY & LIABILITIES | 58,627 | 68,366 |
1) During the second quarter of 2024, Volvo Car AB (publ.) made a share split (2:1) of the class B shares. A reduction of the share capital through
redemption of shares, and an increase of the share capital through a bonus issue without issuance of new shares. 2) The equity is reduced by SEK –9,308 m relating to the distribution of shares in Polestar Automotive Holding UK PLC.
GENERAL DEFINITIONS
Volvo Cars and Volvo Car Group
Volvo Car AB (publ.) together with its wholly-owned subsidiary Volvo Car Corporation and its subsidiaries are jointly referred to as "Volvo Car Group" or "Volvo Cars".
Volvo Car AB (publ.), with its registered office in Gothenburg, Sweden, is a publicly listed company on the Nasdaq Stockholm Stock Exchange (traded under the ticker VOLCAR). The largest owner, holding 78.65% of shares and capital, is Geely Sweden Holdings AB, owned by Shanghai Geely Zhaoyuan International Investment Co., Ltd., registered in Shanghai, China, and ultimately owned by Zhejiang Geely Holding Group Ltd., registered in Hangzhou, China.
Volvo Car AB (publ.) holds shares in its subsidiary Volvo Car Corporation and provides the Group with certain financing solutions. Volvo Car AB (publ.), indirectly through Volvo Car Corporation and its subsidiaries, operates in the automotive industry with business relating to design, development, manufacturing, marketing and sale of cars and thereto related services.
Associated companies
Associated companies are companies in which Volvo Car Group has a significant but not controlling influence, which generally is when Volvo Car Group holds between 20% and 50% of the shares.
Joint venture companies (JVs)
Joint ventures refer to companies in which Volvo Car Group, through contractual cooperation together with one or more parties, has joint control over the operational and financial management and has rights to the net assets of the arrangement.
Retail sales
Retail sales refer to sales to end customers (including a portion of cars used as customer loaner and demo cars) and is a relevant measure of the demand for Volvo Cars from an end customer point of view.
Wholesales
Wholesales refer to new car sales to dealers and other customers including rentals.
Europe
Europe is defined as EU (European Union) + EFTA (European Free Trade Association) + UK (United Kingdom).
Passenger cars
Passenger cars are vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat.
Battery Electric Vehicles (BEV)
BEV cars include all vehicles which are 100% fully electrified cars.
Non Battery Electric Vehicles (Non-BEV)
Non-BEV cars include all vehicles which are not 100% fully electrified cars (BEV). For Volvo Cars, it includes plug-in hybrid (PHEV), mild hybrid (MHEV) and internal combustion engine cars (ICE).
Electrified cars
Electrified cars include 100% fully electric cars, the same as the Battery Electric Vehicles (BEV), and Plug-in hybrids (PHEV), in both petrol and diesel with a cord for charging.
ICE
Internal combustion engine, including all powertrain types except plug-in hybrids (PHEV) and fully electric vehicles (BEV).
MHEV
Mild hybrid electric vehicle utilises both a gas engine and an electric motor. The MHEV is used to start the engine and brake or slow the car, thereby recovering brake energy that is stored in the 48V battery.
Agency personnel
Agency personnel is referred to as specific competence that is sourced externally and assigned to meet fluctuating business resource needs.
Contract manufacturing
A business model in which a third-party company is contracted for the production of goods or components over a specified contract period.
Repurchase cars
Cars under repurchase agreement are cars such as company cars and cars sold to rental companies. These cars are sold under a contract with a commitment (the right or obligation to buy back the car).
Alternative performance measures presented by Volvo Car Group
The alternative performance measures presented and disclosed in this interim report are used internally by management in conjunction with IFRS measures to measure performance and make decisions regarding the future direction of the business. The Group believes that these alternative performance measures, when provided in combination with reported IFRS measures, provide helpful supplementary information for investors. These alternative performance measures are not a substitute for or superior to IFRS measures and should be used in conjunction with reported IFRS measures. Further, these alternative performance measures, as defined by the Group, may not be comparable to other similarly titled measures used by other groups.
Volvo Cars has applied the guidelines from ESMA (European Securities and Markets Authority) regarding alternative key figures (APMs, Alternative performance measures). Although these key figures are not defined or specified according to IFRS, they provide the valuable supplementary information to investors and the company's management regarding the company's performance.
Gross margin
Gross margin is defined as Gross income as a percentage of revenue. Gross margin presents the per cent of revenue that Volvo Cars retains after incurring the direct costs associated with producing the goods and services sold.
EBIT
EBIT is defined as Net income excluding financial income, financial expenses and Income taxes, that is operating income presented in the income statement. EBIT presents the operating income of Volvo Car Group.
EBIT margin
EBIT margin is defined as EBIT as a percentage of revenue. The EBIT margin presents the profitability of the operation in relation to the recognised revenue earned by Volvo Car Group during the accounting period.
EBIT excl. share of income in JVs & associates
EBIT excl. share of income in JVs & associates is defined as EBIT less the result from share of income in JVs & associates. This presents the profitability of the operation excluding share of income in JVs & associates during the accounting period.
EBIT margin excl. share of income in JVs & associates
EBIT margin excl. share of income in JVs & associates presents the profitability of the operation excluding share of income in JVs & associates in relation to the recognised revenue earned by Volvo Car Group during the accounting period.
EBITDA
EBITDA is defined as EBIT excluding depreciation and amortisation of non-current assets. EBITDA presents an overview of the profitability of Volvo Car Group operations.
EBITDA margin
EBITDA margin is EBITDA as a percentage of revenue. The EBITDA margin presents the profitability of the operation in relation to the recognised revenue earned by the Group during the accounting period.
Items affecting comparability
Transactions that are not related to recurring business operations, but affecting the financial outcome in a material way, and where the probability of reoccurrence over the coming years is limited.
Share of investing cash flow
Share of investing cash flow is defined as the share of investing cash flow allocated to certain types of development as a percentage of the total investing cash flow. Share of investing cash flow presents the allocation of the Group's cash resources to certain investments during the reporting period.
Net cash
Net cash is defined as cash, cash equivalents and marketable securities less liabilities to credit institutions and bonds. Net cash represents Volvo Car Group's ability to meet its financial obligations.
Liquidity
Liquidity is defined as cash, cash equivalents, undrawn credit facilities and marketable securities.
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measures are presented in SEK m unless otherwise stated.
The reconciliations of the respective key figures against the most directly reconcilable item in the financial statements can be found at: investors.volvocars.com/en/results-and-reports/results-centre
| SEK m | Jul–Sep 2024 |
Jul–Sep 2023 |
Full year 2023 |
|---|---|---|---|
| Revenue | 92,783 | 92,045 | 399,343 |
| Cost of sales | –73,747 | –73,968 | –321,916 |
| Research and development expenses | –3,403 | –2,909 | –12,884 |
| Operating income (EBIT) | 5,790 | 4,458 | 19,939 |
| EBIT excl. share of income in JVs & associates | 5,710 | 6,148 | 25,567 |
| Net income | 4,356 | 3,219 | 14,066 |
| EBITDA | 10,369 | 8,651 | 37,388 |
| Gross margin, % | 20.5 | 19.6 | 19.4 |
| EBIT margin, % | 6.2 | 4.8 | 5.0 |
| EBIT margin excl. share of income in JVs & associates, % | 6.2 | 6.7 | 6.4 |
| EBITDA margin, % | 11.2 | 9.4 | 9.4 |
VOLVO CAR GROUP
Gothenburg, 22 October 2024
Jim Rowan President and CEO
This report has not been subject to review by Volvo Car AB's auditors.
CONTACT
Analysts and investors John Hernander Head of Investor Relations +46 31-793 94 00 [email protected]
Journalists and media Volvo Cars Media Relations +46 31-59 65 25 [email protected]
FINANCIAL CALENDAR & CONFERENCE CALL
Webcast and conference call
At 08:00 CET on 23 October, President & CEO Jim Rowan and CFO Johan Ekdahl will host a livestream for media, investors and analysts.
Link: live.volvocars.com
For those tuning in from China, please use this link: live.volvocars.com.cn
To call in, participants need to register and will then receive the dial-in details and individual PIN. Link to register
Upcoming investor Events
6 February 2025: Q4 and full year 2024 report 3 April 2025: Annual General Meeting 29 April 2025: Q1 2025 report 17 July 2025: Q2 2025 report
ABOUT THIS REPORT
FORWARD LOOKING STATEMENTS
This report contains statements concerning, among other things, Volvo Car Group's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent Volvo Car Group's future expectations. Volvo Car Group believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions. However, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to: Volvo Car Group's market position, growth in the automotive industry, and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Volvo Car Group, its associated companies and joint ventures, and the automotive industry in general. Forward-looking statements speak only as of the date they were made and, other than as required by applicable law, Volvo Car Group undertakes no obligation to update any of them in light of new information or future events.
Language
In the event of inconsistency or discrepancy between the English and the Swedish version of this publication, the Swedish version shall prevail.
Totals and roundings
Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise.
