As economic woes continue and price wars intensify, sales during the past year, 2012 have not been upto expectations for Swedish auto manufacturers Volvo Car Corp. The company has reported a 6% dip in sales during 2012 with sales and profit margins being under severe pressure. Competition in the auto industry is what is causing these constraints, as Volvo looks ahead at the New Year with equal amount of trepidation.
To gain momentum and compete in a tough market, the company has plans afoot for revamping their lineup. This will go a long way to compete with rivals while at the same time attract customers in the Chinese auto sector which is growing by leaps and bounds.
Volvo Cars was taken over by the Chinese auto manufacturer Zhejiang Geely Holdings from Ford Motor Company in 2010. During 2012 Volvo sold 421,951 units, while this figure stood at 449,255 units in 2011. Sluggish Chinese sales made the company replace its Chief Executive in October 2012.
For 2013, Volvo has plans in place. A new manufacturing unit is being opened at Chengdu in the second half of 2013 while a $1.1 billion five year re haul is planned in vehicle platform and engine developments. A new V40 model is also planned for launch in China and India during the current year.