Geely/Volvo warns of ‘most difficult year’ ahead
The Chinese car company Geely expects to experience the most difficult year since its existence this year. The corona crisis has disrupted the supply chains of the automaker, among other things. The spreading virus also does no good to sales and production. The parent company of the Swedish Volvo reported this when the annual figures for 2019 were published.
Geely, which repeatedly reported difficult market conditions last year, partly due to the trade conflict between China and the United States, closed the financial year with a profit of 8.2 billion yuan (more than 1 billion euros). That meant a profit drop of 35 percent on an annual basis. Sales fell 9 percent to 97.4 billion yuan. Geely sold 1.36 million cars. That was 9 percent less than the year before.
In the first months of this year, the company clearly notices the consequences of the corona crisis. February sales fell by 75 percent. In the first two months of the year, sales volume declined by 45 percent.