Despite reporting a drop in its first quarter operating earnings, Volvo has reiterated that it sees no need to cut prices of its electric vehicles (EVs) because there is a healthy demand for them.
In February, the company had said it would not follow Tesla’s move of going into a price war to spur demand and fend off rising competition. Yesterday, its CEO Jim Rowan repeated that stand, telling Reuters that as long as demand continues to be high for the automaker, he saw no reason to change its position on pricing.
Rowan said that lithium prices, a major source of cost for the company’s EVs, had started to decline, which would help reduce costs. This was despite Chile, the world’s second largest producer of the metal, saying it would nationalise its lithium industry. He said that more lithium sources were starting to be available from other parts of the world, which made him comfortable that the cost of the material would continue to decline.
With sales up by 10% in Q1, the company reaffirmed its outlook for “solid double-digit growth” in retail sales this year, provided there were no major supply disruptions. Like other automakers, Volvo has begun slowly emerging from an extended period of supply chain shortages, which has affected output and driven up costs. The company said while there were still some shortages, its manufacturing had improved.
The Swedish automaker said yesterday that its Q1 operating earnings fell to 5.1 billion krona (RM2.2 billion) from six billion krona (RM2.59 billion) in the same period last year.
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It means that when Tesla is launched in Malaysia, they will be forced to sell at a higher price to protek Volvo manufacturing plant in Malaysia. Do mind that Malaysia car selling price is fixed by the government to protek certain parties, cronies suppliers, tax income, insurance companies and also bank profits.
I would love to ask if you have proof of your claims against ‘the govt, cronies suppliers, tax income, insurance companies and banks”.
Link below (by Paultan for car price approval)
https://paultan.org/2019/01/25/miti-to-speed-up-process-for-vehicle-price-approvals/
The higher the car price can be set, the higher the excise duty, the higher the insurance, the higher you have to loan from the bank. Just for your reference, UMW is owned by PNB, and Maybank largest shareholder is PNB. PNB is a govt investment arm filled with own people aka cronies.
Explain why the BMW iX is cheaper in Malaysia than the UK and Australia if there is such a great conspiracy?
The only problem for would be tesla buyers is they cant resist the temptation to get SYIOK SENDIRI.
If there is a buying moratorium on Tesla cars,u think Elon the bugger can smoke cigar in style and tokok?
Let his Tesla cars spill over into the highways with no more parking space for unsold units.
There is a video in USA of rows n rows of tesla cars waiting for expensive car parts..some abandoned.Check it out for yourself.
Gotta keep the shareholders happy yo line up their big fat pockets yo.
I would love to ask if you have proof of your claims against ‘the govt, cronies suppliers, tax income, insurance companies and banks”.
But but suckers buy premium price X70 thinking it’s Volvo tech. Cant help it SjkC mentality in play here
Here is for car enthusiasts. Idiot like you get lost!
True. X50, x70, x90 buyers are so delusional thinking they are in Volvo owners league
I’m fine if they won’t reduce EV prices, gotta switch to Combustion cars loh for now
made in china but still so exp. tak nak. it nak beli china made I buy cap china