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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Volvo Cars third quarter profit roses the automaker betterfit benefitted

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Speaker 2: from the effects of its one point nine billion dollar

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Speaker 2: cost saving program. That's even as Volvo Cars sales are

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Speaker 2: down eight percent this year through September. So to bring

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Speaker 2: it all together and please to welcome the Automaker's CEO

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Speaker 2: Hocant Samuelson to the program. Good morning, Hokan. Thank you

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Speaker 2: so much for making time for us. As I say,

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Speaker 2: you've done well nonprofit here, but sales less, so less, Rosie.

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Speaker 2: Are you concerned about demand? Well, how's your outlook change

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Speaker 2: going forward?

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Speaker 1: Now? I'm quite confident because we know really why we

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Speaker 1: were down in cell. We had very high sales of

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Speaker 1: our smallest electric car last year, and that was made

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Speaker 1: in China and then we need to move it to

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Speaker 1: Europe and localize it in Belgium, and then we lost

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Speaker 1: production capacity. But now we are back using that car,

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Speaker 1: so I'm not too nervous about the volume. I'm more

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Speaker 1: concerned that we continue with our actions on profitability, coming

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Speaker 1: back to a solid cash flow. That's my number one priorities.

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Speaker 2: Well, you hint at the fact that you're more exposed

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Speaker 2: to US harffs than many European rivals. You've moved some

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Speaker 2: production already. Is there going to be more of that,

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Speaker 2: more moving production?

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Speaker 1: Yes, I don't think you should call it moving production,

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Speaker 1: but we will increase the utilization in the factory in Charlestone.

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Speaker 1: We need to introduce more cars, but they will be

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Speaker 1: new cars that they will not be moved from Europe.

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Speaker 1: But we need to really utilize the factory to a

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Speaker 1: much higher degree than we do to date. And that's

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Speaker 1: really a very important part of our turnaround in America

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Speaker 1: as well. We need to be industrially present. We need

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Speaker 1: to be an American company in the producing closer to

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Speaker 1: our customers.

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Speaker 2: But of course you do have a Chinese owner. And

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Speaker 2: I believe you're waiting for feedback from the US Commerce

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Speaker 2: Department on whether you'll be allowed to sell future models

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Speaker 2: into the US. Have you heard anything back yet from

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Speaker 2: the Commerce Department?

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Speaker 1: Now, there is a constant dialogue with our legal expert

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Speaker 1: with the people in the department, and there is no urgency.

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Speaker 1: I think this is for Modular twenty seven or something.

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Speaker 1: But there is a process going on, and I must

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Speaker 1: say I'm not too nervous about that. We have been

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Speaker 1: in the US for seven years, and we will continue

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Speaker 1: being present in the US.

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Speaker 2: Okay, not too nervous. But you're fully confident, are you

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Speaker 2: that the administration is going to grant you this exemption?

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Speaker 1: I think you can never be fully confident about anything

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Speaker 1: these days. But that's not what keep me awake nights.

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Speaker 2: Keep you awake at night then, hokan.

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Speaker 1: No, I am, I'm too old for that, so I

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Speaker 1: sleep rather well. I'm quite confident about the future of

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Speaker 1: our company, and I'm really glad to be back. And

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Speaker 1: I think with our result of seven point four, I

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Speaker 1: think hopefully that is still a sign of a turnaround

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Speaker 1: of the company. Maybe it's too early to say, but

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Speaker 1: it's still very positive, combined with also positive singless on

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Speaker 1: the sales side. September was the first month where we

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Speaker 1: are back into growth.

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Speaker 2: Well. We've also been reading about how Europe's auto industry

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Speaker 2: is exposed to chip disruptions, potentially from China because of

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Speaker 2: the new export restrictions on China made semiconductors from Dutch

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Speaker 2: chip maker experience. Has that affected Volvo cars at.

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Speaker 1: All, No, but not yet, but we are of course

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Speaker 1: this will affect our suppliers, so it's not supplied directly

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Speaker 1: to us, but we are monitoring this very closer. And

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Speaker 1: I think this is almost coming back in time to

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Speaker 1: the pandemic where a similar situation, and I think we

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Speaker 1: learned and to really be hands on and really together

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Speaker 1: with our suppliers looking into exactly how the supply of

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Speaker 1: the ships are coming in. So we are monitoring it

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Speaker 1: and very difficult to say anything more today. This is

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Speaker 1: a problem the whole industry is facing, so we are

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Speaker 1: definitely not alone with it.

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Speaker 2: Okay, really great to talk to you this morning. How

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Speaker 2: come Samuelson, the CEO Evolvo Cars off the back of

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Speaker 2: their results. Thank you so much for making time for

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Speaker 2: daybreak here this morning.