Oct. 20 (Bloomberg) -- Volvo Car Corp., the Swedish automaker owned by Zhejiang Geely Holding Group Co., said it swung to a loss in the third quarter because of spending on new technology and negative currency effects.
Volvo had an operating loss of 763 million kronor ($116 million) in the period, compared with 748 million kronor in earnings before interest and taxes a year ago, the Gothenburg, Sweden-based company said today in a statement. Volvo was profitable in the first nine months and expects to report a positive result for the full year, it said.
“There are concerns about consumer confidence given the turbulence of financial markets,” Chief Executive Officer Stefan Jacoby said in the statement. “At the same time I’m very pleased about the positive sales developments and the strength of our brand, and the outlook for 2011 remains positive.”
Volvo aims to more than double annual sales to 800,000 vehicles by 2020 and challenge luxury-car leaders Bayerische Motoren Werke AG, Volkswagen AG’s Audi and Daimler AG’s Mercedes. It plans to invest as much as $11 billion over the next five years to tap demand in markets including China, where it’s building a factory in Chengdu and a research and development center.
Revenue rose 5.9 percent to 26.9 billion kronor in the quarter, while car sales gained almost 28 percent to 103,119 vehicles. Volvo increased its market share in all regions compared with a year earlier.
Volvo warned on Aug. 17 that economic instability could hit auto demand in the second half. Ford Motor Co. sold Volvo to Geely last year for about $1.5 billion.
--Editors: David Risser, Jerrold Colten
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