Automotive giant Volvo reported better-than-expected operating earnings in Q2 2024, with net sales reaching SEK 140.2 billion. However, retail sales growth forecasts for the year were reduced. Despite a decline in operating income margin and falling volumes, Volvo’s return on capital employed remained strong at 41.3%. The company also saw fluctuations in truck, construction equipment, and bus sales.
Volvo is intensifying its focus on the green transition and electric vehicles, investing significantly in biodiesel trucks and developing combustion engines running on green hydrogen. The company announced a joint venture with Daimler Truck to create a software-defined vehicle platform and truck operating system, enhancing digital capabilities in vehicles. The partnership, based in Gothenburg, Sweden, aims to develop innovative digital features for truck and bus customers globally.
Martin Lundstedt, Volvo’s CEO, highlighted the company’s commitment to zero-emissions vehicles and emphasized the importance of vehicle digitalization in the ongoing transformation towards CO2-neutral drive technologies. Daimler Truck CEO, Martin Daum, expressed that the collaboration with Volvo will enable them to create a benchmark truck operating system and set an industry standard.
Despite concerns about tapering EV demand in Europe, Volvo remains dedicated to sustainability initiatives and expanding its electric vehicle offerings. The company’s innovative partnerships and investments reflect its determination to drive the future of transportation towards greener and more efficient solutions.
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