Volvo Car Group, the premium car maker, has reported third quarter operating profit of SEK2,067m, way above last years.

Volvo Car Group, the premium car maker, has reported third quarter operating profit of SEK2,067m compared to SEK1,276m in the same period last year and a year-on-year increase in revenue to SEK41,1bn from SEK36.1bn previously. The operating margin rose from 3.5 per cent in the third quarter of 2015 to 5 per cent in 2016.

Operating profit for the first nine months of the year was SEK7.66bn compared to a full year operating profit for the whole of 2015 of SEK6.6bn, prompting Volvo Cars’ expectations for the full year to move from an “improvement” to a “substantial improvement” in profit compared to last year.

“With nine months of the year completed, I can state with confidence that Volvo Cars is on track for another record year in terms of sales and that operating profit for the year is expected to improve substantially,” said Håkan Samuelsson, president and chief executive.

Volvo Cars attributed the strong third quarter performance to robust sales in major markets of both lifecycle models and new models. The bestselling cars in the quarter were two lifecycle cars, the XC60 SUV and V40 hatchback, with sales of 38,000 and 23,000 respectively, closely followed by the new XC90 SUV with sales of 22,000. Sales of the XC90 hit 66,000 for the first nine months of the year.

Overall, third quarter retail sales increased 7.8 per cent to 122,766 compared to the same period last year, with sales in China and the US both up over 20 per cent in the period. Full details of the company’s operational and financial performance can be found here.

At the same time as Volvo Cars is growing in terms of sales and profitability, it is also continuing to unveil an all new range of cars.

In the third quarter of 2016, it was possible for the first time for customers to purchase any of Volvo Cars’ top-of-the-range 90 series cars. There are good signs that the success of the XC90 SUV is being followed by strong demand for the S90 sedan and V90 estate.

Another significant development in the third quarter was Volvo Cars’ move to entrench its position as a leader in autonomous driving by forging two important alliances.

The first was with Uber, the US online ride hailing company. Volvo Cars is the first car maker to work with Uber to develop base cars to provide driverless ride hailing services. “It is highly significant that of all the car companies in the world, Uber joined forces with Volvo Cars,” said Mr Samuelsson.

The second is the establishment of a new joint venture company with Autoliv, the Swedish automotive safety technology company, to develop and sell software for autonomous driving cars.

“Volvo Cars will no longer be purely a car maker but increasingly a software developer responding to important technological changes in the automotive industry,” said Mr Samuelsson.

TMW - The Volvo XC90 T8, the range topping hybrid that wipes the floor with everything else in it's class.

Under Ford Volvo had a strange and trying time, with models coming infrequently and based on other Ford branded products, then we had the downturn and Ford panicked, they cleared out all but Lincoln, and Volvo was sold to Geely of China.

It was then that people started to worry, what would become of the Swedish giant, would it be watered down, and if so, by what margin, but those fears were unfounded, Geely seems to have left the bosses in Sweden alone with the know how to build world beating cars, and the first of those cars that came from that confidence was the XC90 SUV.

The existing XC90 was getting rather long in the tooth, and was at one stage the companies best selling model, but no longer, the new car was needed and swiftly, it was then the concepts appeared and then the All-New XC90 was launched, and what a car that is.

The model tested here is the T8, the Twin Engined model which is a plug in hybrid, unusual in such a large SUV, but works really well, the T8 has followed the D5 and T6 models, both of which are superior to the car it replaces, the T8 comes with a 2.0 litre engine, and comes with a Supercharger for low-rev response and a turbocharger for higher revs, this powers the front wheels of the car via a seamless and super smooth 8 speed automatic gearbox.

The second engine is situated at the rear of the car, sitting nicely between the sub frames, this electric motor generates around 80bhp and obviously drives the rear wheels, this motor is powered by a battery which is stored within the transmission tunnel, this is an ideal area, as there is no prop shaft so space is available for these batteries, the weight also gives a lower centre of gravity, again helping to create a near perfect off-roader.

The way in which this car is propelled is via different methods and is very flexible in the way it does this, you can have full on electric mode, where you can get upwards of 25 miles of range, half and half or full power, or even a specific 4WD mode which is best for driving, well, off road, or just allow the car to chose, which is most probably where the majority of owners will put it.

Now you would think that, that's it, but no, there is a third engine which generates 25bhp and is specifically designed to iron out the changes between different drive methods and to top up and gaps in the torque range. 

The car is big, there is no getting away from that, but once you are sat behind the wheel it really does not feel that large, in fact you can push it and whip it about like a medium sports car, the grip is great, and cornering is one of the best for this size of SUV, you get the added benefit of not really being beaten about the ears with engine noise, road noise is a little wearing on really rough roads, and on pot holes and sleeping policemen, you do hear the thud, but it is not intrusive enough to make the driver regret buying it, far from it.

Breaking is OK, not the best at stopping, but you would not expect it to stop on a penny for a car of this weight and size, it does everything right, stops when you need it too, and without any issues, no rear end wobble at high speed braking, but you do occasionally feel the difference between normal braking and regenerative braking, but again not noticeable enough to be intrusive.

The car shines when you look at the numbers and they are very impressive, 49g/km is really impressive, combine that to 134.5mpg and you have a car that not only does everything you could ever ask of it, but it is friendly to the environment too, and in these times of diesel scandals and smog infested cities, this car can help eliminate some of this.

Top speed is 140mph, so no slouch, and with the eight speed auto, overtaking is child's play, but you are never far from being aware that this is a large beast, and one that does everything right.

Spending time inside the car and you will soon feel at home, it takes little time to get comfortable, and once you have  everything in the right place, driving the car is a pleasure, the very light and airy cabin is a really nice place to be in, it has a zen like feel to the interior. you sit low down, or that's how it seems, with a built up central area, you feel like you are in a jet fighter.

There are very few buttons to play with, and that's a nice change from some of the competition, that has upwards of 30+ button and switches to play with, the vast majority of the car is run entirely through the touchscreen system, and believe me, it really is simple to use, with one of the simplest, perfectly designed touchscreen systems there is, you can even pinch the screen of stretch it out with your fingers, just like an iPad.

Whether you use the third row of seats is up to you, but they are quite opulent for a third row, and can take people, albeit, smaller than your average adult, with sublime comfort and room to spare, the entire interior is luxurious, even in the lower spec models, you feel like you are in something far more expensive, a Bentayga comes to mind.

The T8 is not cheap, at around £65k plus options but for that you get probably the best SUV out there, even ranking above the Daddy, the Range Rover, and for Volvo, this model is just the start, we already have the new S90 and V90 ready for the public, the V40 has been face lifted and concepts for the S40, V40 and XC40 have been launched, and from what i have been told (on the quiet) these cars will appear not to dissimilar to the concepts, if true, then Volvo will have even more massive hits on their hands.

There is only one question, would I own one.

To damned right I would, this is as near to perfect as they come.

TMW - Jon Mower

China, in 2015 saw growth running at 11% higher than the preceding year, thanks in part to sales from Tier 2 cities.

• 18.9 million new passenger cars were sold in China in 2015, up 11% on 2014
• Sales growth has slowed over the last two years
• 55% of new registrations for foreign car brands were outside of China’s Tier 1 and 2 cities last year
• SUVs were the biggest drivers of growth, with sales up by 45% on 2014 to 6 million units

China’s new car market continues to be affected by the economic slowdown and the introduction of car purchase restrictions in eight key cities, according to the latest analysis by JATO Dynamics. New passenger car registrations in the world’s largest market totalled 18.9 million in 2015, an 11% increase on 2014.  

Although new car sales growth for 2015 was still in the double digits, the rate declined for a second year in a row – dropping to 11% from 13% in 2014 and 16% in 2013.

Over the last few years Chinese authorities have introduced schemes to cap the number of new cars that can be bought by consumers and other measures aimed at tackling issues such as emissions and traffic congestion. These are now in place in eight main cities, including the three largest by population – Guangzhou, Shanghai and Beijing.

The introduction of these policies has created a significant market shift. The subsequent falls in new car registrations in cities with car purchase restrictions were both intended and expected. However, this has been combined with a surge in sales in unaffected tier 3 and 4 cities as average wages rise and more consumers buy their first car. Sales of new sedans were higher in these smaller cities than in the tier 1 and 2 cities in 2015 and SUV volumes were almost the same, at 2.59 million units, thanks to more rapid growth in the tier 3 and 4 cities over the course of the year. There are signs that manufacturers are adjusting their strategies accordingly – in 2011, 50% of new registrations of non-domestic brand cars were outside tier 1 and 2 cities, in 2015 this figure had risen to 55%.

Just as in Europe and the USA, SUVs are the biggest driver of new sales. Year-on-year SUV sales in China increased by 33% in 2014 to over 4 million units, and by a further 45% in 2015 to 6 million units. SUVs accounted for almost one in three new passenger vehicles (32%) sold last year. This trend has particularly benefitted domestic brands with SUVs at lower price points. Baojun (+1.4), Haval (+1.22) and Geely (+1.14) all saw more than a percentage point increase in their market shares last year.

But while local players might be gaining ground, the largest international manufacturers still dominate the market by volume sold. Volkswagen remains the best-selling brand in China, with over 2.6 million new registrations in 2015, followed by Toyota (more than 1.1m) and Hyundai (over 1m). In contrast, Changan, last year’s best-selling Chinese brand, sold 694,000 new cars to take eighth place in the 20 top selling brands.

“Our analysis shows that the Chinese automotive sector is in a period of transition. Growth is coming from less mature cities and from newer segments such as SUVs. Regulators and manufacturers now face the challenge of finding a way to sustain such an economically important industry, while also addressing its environmental and social impacts,” commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.

In preparation for the world début of the new V90 Estate, Volvo looks back on it's load lugger history.

Few car companies can claim the same pedigree as Volvo Cars when it comes to the design and manufacture of family estates. That is why the news that Volvo will reveal its new V90 estate on February 18 in Stockholm is so widely anticipated and significant.

The V90 is a car that benefits from more than 60 years of estate building heritage, which started with the Volvo Duett launched in 1953 – the first car to meet the combined needs of drivers’ active leisure time and practical professional lives.

Since that day, Volvo has sold more than six million estates worldwide, representing around a third of the total number of Volvos sold since the company’s foundation in 1927, giving it a well-deserved reputation for designing and building the ultimate family estates.

“We have provenance in the estate segment,” said Håkan Samuelsson, chief executive at Volvo Cars. “In many people’s minds we are known as the definitive estate brand. While the Volvo brand stands for much more than just estates, we will proudly carry forward this rich heritage with the V90.”

The launch of the new Volvo V90 on February 18 is the latest chapter in this proud history.

Based on the same Scalable Product Architecture (SPA) as its XC90 and S90 siblings, the V90 is the estate version of the widely acclaimed S90 saloon, which was launched at the North American International Auto Show in January.

A selection of iconic estate models have shaped Volvo’s history. These include:

Duett

Launched in 1953, the Duett went on to become one of the most loved models ever, was one of the first Volvos to be exported to the United States, and it was immortalised in 1997 by getting its own Swedish postage stamp.

Amazon

The Duett was followed in 1962 by the Amazon, or the 221 as it was officially known.

The Amazon was a significantly more elegant and refined estate than the Duett, which had its origins as a delivery van, while it also offered more space in the boot.

The S model, which offered a full 115 hp, was an incredibly sporty car by the standards of the 1960s. The boot door was an American-style two-split version – a solution that would return 40 years later on the original XC90.

1800 ES

A refresh of the 1800 sports coupe, the 1800 ES was known in England as a shooting brake: a sporty estate with space for hunting gear or golf clubs in the back.

The 1800 ES was introduced in the autumn of 1971, with its most exciting feature possibly being the huge rear window that had no bezel whatsoever. Hinges and handles were fixed directly to the glass, which was very modern in the early 1970s.

Since only a little more than 8,000 1800 ES models were built, it has become one of the most sought-after classic Volvo cars. The 1800 ES was also a clear source of inspiration for the Volvo Concept Estate, which was launched at the Geneva Motor Show in 2014 as a precursor to a new family of Volvo estates.

245

In 1974, the archetypal Volvo estate car was launched: the 245. It is a car that is still strongly associated with the brand. It remained in production for almost 20 years until 1993, and was also available in a more exclusive edition – the 265 with a V6 engine. The 1980s marked the launch of the 245 Turbo edition, the world’s first estate car with a turbo engine.

960

The Volvo 960 was the final rear-wheel-drive estate car produced by Volvo as a development of the 700 series from the 80s. It was introduced in 1990, featuring smoother body lines and a brand-new six-cylinder engine. In 1996, its name was changed to the V90 – a name that now returns exactly 20 years later. It was one of the most elegant estate cars in Volvo’s history.

850 T5-R

With its intense yellow paint job, 240 hp engine and 0-62 mph acceleration in 6.9 seconds, the Volvo 850 T5-R was an estate car like no other ever seen before. Launched as a limited-edition, model year 1994-only version of the 850, the T5-R became an instant collector's item.

The Volvo 850 also caught the eye on the race track. It took Europe’s racing scene by storm in 1994 when it debuted in the prestigious British Touring Car Championship (BTCC) as the first factory-entered racing estate.

WORLDWIDE SALES - VOLVO - The Swedish Giant continues to grow sales with it's XC models performing well.

• Volvo Cars’ global sales up 2.4 per cent, continued growth in US and Europe
  • Global retail sales of 45,539 cars in September                                   
  • Sales progress continues in United States - up 18.4 per cent
  • Strong demand for the XC60 and XC90 models
  Volvo Cars posted a 2.4 per cent increase in retail sales for the month of September, selling 45,539 cars globally. Europe and the US market were the growth drivers, driven by continued high demand for Volvo’s XC60 and XC90 models.
  
  
  
  
  
  
  Retail sales in Europe as a whole were up by 2.2 per cent to a total of 25,403 cars, with growth led by Sweden where Volvo reported a 14.9 per cent increase in September and a market share close to 21 per cent. The United Kingdom was Volvo’s biggest market globally in September with 7,402 retail sold cars.
  The United States reported 5,527 retail sales, up 18.4 per cent versus the same month last year. The growth was driven by the new Volvo XC90 as well as the best-selling XC60 model.
  Sales in China reached 6,957 cars, where the locally produced Volvo XC60 is growing in demand. The decline in China reflects a general slowdown in the Chinese economy which has affected the overall car market.
  “Our growth in Europe and the US reflects the positive customer reception of the new Volvo XC90 while at the same time the XC60 is about to achieve a new all-time high performance”, said Alain Visser, Senior Vice President Marketing, Sales and Customer Service at Volvo Cars. “This is very encouraging in the planning for the continued roll out of our model renewal”.
  Retail sales status (deliveries to end customers) for Volvo Car Group is as follows: 

  	September				January   – September
  	2014	2015	Change		2014	2015	Change
  China	7 375	6 957	-5,7%		59 198	56 655	-4,3%
  USA	4 667	5 527	18,4%		43 856	46 381	5,8%
  Sweden	4 987	5 732	14,9%		42 765	46 750	9,3%
  Western Europe	19 871	19 671	-1,0%		130 848	137 853	5,4%
  Other markets	7 591	7 652	0,8%		62 533	58 507	-6,4%
  TOTAL	44 491	45 539	2,4%		339 200	346 146	2,0%