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- Geely is Building Satellites for Autonomous Cars
- Merger in the Works for Volvo, Parent Company?
- Polestar 2 Takes A Step Closer To Production With Prototypes Rolling Off The Line
Along with the rest of the automotive world and, indeed, the rest of the economy, Volvo is warning that its 2020 earnings will be affected by the coronavirus.
“The weakening market and production disruptions will impact the first half year results negatively as sales, profit and cash flow are expected to be lower than last year’s and it will be challenging to recover the impact during the remainder of the year,” said Volvo in a statement.
Although it’s hardly a surprise to find out that Volvo is a part of the economy, it does show a change of pace for the formerly optimistic brand. Only a month ago, Volvo said it was expecting its profits to increase this year. Act of (an angry and vengeful) God does seem like a pretty excuse for missing your financial forecasts, though.
“As the outbreak has spread globally, Volvo Cars has seen negative effects on its business from a weakening market and production disruptions, which are expected to continue as the situation evolves,” is how Volvo put it.
Plant closures in China and now at its US plant mean that supply will be affected even if demand picks up once we can stop social distancing and start social nearing.