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Volvo - China

Volvocar's CEO, Hakan Samuelsson insists that the company is profitable in China despite contrary press reports

Sunday, 21 April 2013

Volvo cars Corporation has been working very hard recently, more in defending itself from bad press rather than selling cars. Is their performance in the Chinese market leading them to multi-billion Krona looses are reported last week, the CEO disagreed.

From internal quibbles and power struggles in the top management department to the treatment of the former CEO, Stefan Jacoby when he fell sick, and his subsequent dismissal to now issues relating to its performance in China, Volvo Car Corporation has been in a mess.

After the Swedish paper, Svenka Dagbladet reported on Thursday that the company was poised to making multi billion krona looses in its operations in China, its press officer initially refused to say something relation to the story. Some observers immediately concluded that had the company been performing well, the press officer would not have not taken long to come back to Swedish news agency, TT to argue that Volvo cars Corp., was not making the claimed looses.

It is now thought that the company had doctored the talk for him to give to the press which he did vaguely said and also referred to any interested body to look into the company's financial record that was made public.

Swedish television chased the CEO, Håkan Samuelsson who was forced to claim that Volvo was doing well in China. He rejected media reports that that the company would make billions of looses in China.

"We are profitable in China. We sold 42,000 cars there last year," said Samuelsson to Swedish television while at the Shanghai Motor Show.

When compared with German manufactures such as Audi that sold 400,000 cars in China last year, Volvo car's CEO defended his company by saying that that the German car companies have been in China longer than Volvo.

Samuelsson admits that there it could have gone better for Volvo in the Chinese market. "We started from scratch with a lot of new people and a lot of training," said Håkan Samuelsson.

Thus despite all the sad press pertaining to Volvo's performance in the Chinese market, the CEO feels they are on track to grow in China and are putting the chairman's view of coming up with larger luxurious car design for that market.

By Scancomark.com Team

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