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http://www.autonews.com/article/20120905/COPY01/309059

Volvo Cars said its operating profit fell 84 percent in the first half, hit by tough competition and the global downturn.

Operating profit was 239 million Swedish crowns ($35.63 million) in the first six months compared with 1.53 billion in the same period last year, Volvo said on Wednesday.

Unit sales fell 4.1 percent to 221,309 cars.

"The economic uncertainties in most of our markets will remain for the rest of the year and competition is stiff," CEO Stefan Jacoby said in a statement.

Volvo plans to cut production by about 10 percent and reduce its staff by 200 to 300 people to take account of a slowdown in sales, a union official said last week.

The company has said in the past that it aims to increase sales by 2020 to 800,000 from just over 400,000 cars. That includes 200,000 cars in China, a leap from the 47,000 sold there in 2011.

Ford Motor Co. sold Volvo to China's Zhejiang Geely in 2010 for $1.8 billion.
 

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There are signs that Europe is facing (may already be in) another recession.
 

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...right...and we just ought to have the cars that would be sold in the single digits available to us...

That will make it all so much better...
 

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There are signs that Europe is facing (may already be in) another recession.
That's been obvious, even the cheaper brands like Ford/Vuxhall/Renault/Citroen/Opel have been hit as severely as 15-20% less sales than last year. Europe is very screwed right now.
 

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"About 6% markup on All its cars does't not help.AT ALL We are a Volvo Store but i hate to sell one,because you make no money,between the Dealer and Volvo you cant make enough to buy a newspaper."

Read more: http://www.autonews.com/article/20120905/COPY01/309059780#ixzz25byYzGdV
That was an interesting comment on the press release. I imagine that's a salescritter who is used to dealing with stupid people he can rip off.

See the Edmund's sales/back office "confessions" articles: http://www.edmunds.com/confessions.html
 

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That's been obvious, even the cheaper brands like Ford/Vuxhall/Renault/Citroen/Opel have been hit as severely as 15-20% less sales than last year. Europe is very screwed right now.
Yes indeed. So a 4.1% drop in sales is actually doing much better than a lot of other brands.

Context changes so much (4.1% drop sounds bad, a dropping only 1/4 as much as your competitors actually sounds pretty good).
 

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There are signs that Europe is facing (may already be in) another recession.
MAY be in a recession? The entire continent is in a recession and heading into a depression (especially the Southern part).
 

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MAY be in a recession? The entire continent is in a recession and heading into a depression (especially the Southern part).
There is an official definition of those in economic times. I haven't see reports the ECB has made the declaration.
 

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Someone in Europe bought too many waffles.
 

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Hmm. When the new V60 and V40 were announced, Volvo stated that the bulk of them would be sold in the European market, presumably because their margins are far better over there. Now that auto sales in Europe are contracting and the anticipated market for the new models is probably not going to materialize, VCC might be willing to reconsider their policy of not selling these new models in the US. I'm just sayin'.
 

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There is an official definition of those in economic times. I haven't see reports the ECB has made the declaration.
Ask any Briton, French, Portuguese, Spanish, Italian, Greek, Irish and see what they tell you...
 

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Hmm. When the new V60 and V40 were announced, Volvo stated that the bulk of them would be sold in the European market, presumably because their margins are far better over there. Now that auto sales in Europe are contracting and the anticipated market for the new models is probably not going to materialize, VCC might be willing to reconsider their policy of not selling these new models in the US. I'm just sayin'.
True and, as we all know, you never say..."never"!
 

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Ask any Briton, French, Portuguese, Spanish, Italian, Greek, Irish and see what they tell you...
Trust me, I understand how the general population can feel (or be impacted). But they aren't really into recession until the ECB says so...

Just like in the US...
 

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Trust me, I understand how the general population can feel (or be impacted). But they aren't really into recession until the ECB says so...

Just like in the US...
Forget the U.S. THIS is reality:

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/466

http://economictimes.indiatimes.com/articleshow/13097909.cms

And more graphically (and this is only the beginning if Germany continues in keeping its head in the sand):

http://blogs.reuters.com/macroscope/2012/04/30/europe-in-recession-an-interactive-map/
 

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Regardless of what the ECB says or doesn't say I think we can all agree Europe in not doing well and IS in fact in a recession on it's way to a depression.
 
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