Volvo Cars Forecasts Loss on Investment Costs, Sales Drop

Volvo Cars, the Swedish automaker owned by Chinese manufacturer Zhejiang Geely Holding Group Co., said it’ll be “very tough” to make an operating profit this year because of investment spending and declining sales.

“Unfortunately, there are no positive signals on the European car market,” Chief Executive Officer Hakan Samuelsson told reporters today in Gothenburg, where Volvo Cars is based. “In the first half, we had significantly higher volume than we have now in the second half.” Breaking even before interest and taxes will be “very tough.”