Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Volvo Cars third quarter profit roses the automaker betterfit benefitted
Speaker 2: from the effects of its one point nine billion dollar
Speaker 2: cost saving program. That's even as Volvo Cars sales are
Speaker 2: down eight percent this year through September. So to bring
Speaker 2: it all together and please to welcome the Automaker's CEO
Speaker 2: Hocant Samuelson to the program. Good morning, Hokan. Thank you
Speaker 2: so much for making time for us. As I say,
Speaker 2: you've done well nonprofit here, but sales less, so less, Rosie.
Speaker 2: Are you concerned about demand? Well, how's your outlook change
Speaker 2: going forward?
Speaker 1: Now? I'm quite confident because we know really why we
Speaker 1: were down in cell. We had very high sales of
Speaker 1: our smallest electric car last year, and that was made
Speaker 1: in China and then we need to move it to
Speaker 1: Europe and localize it in Belgium, and then we lost
Speaker 1: production capacity. But now we are back using that car,
Speaker 1: so I'm not too nervous about the volume. I'm more
Speaker 1: concerned that we continue with our actions on profitability, coming
Speaker 1: back to a solid cash flow. That's my number one priorities.
Speaker 2: Well, you hint at the fact that you're more exposed
Speaker 2: to US harffs than many European rivals. You've moved some
Speaker 2: production already. Is there going to be more of that,
Speaker 2: more moving production?
Speaker 1: Yes, I don't think you should call it moving production,
Speaker 1: but we will increase the utilization in the factory in Charlestone.
Speaker 1: We need to introduce more cars, but they will be
Speaker 1: new cars that they will not be moved from Europe.
Speaker 1: But we need to really utilize the factory to a
Speaker 1: much higher degree than we do to date. And that's
Speaker 1: really a very important part of our turnaround in America
Speaker 1: as well. We need to be industrially present. We need
Speaker 1: to be an American company in the producing closer to
Speaker 1: our customers.
Speaker 2: But of course you do have a Chinese owner. And
Speaker 2: I believe you're waiting for feedback from the US Commerce
Speaker 2: Department on whether you'll be allowed to sell future models
Speaker 2: into the US. Have you heard anything back yet from
Speaker 2: the Commerce Department?
Speaker 1: Now, there is a constant dialogue with our legal expert
Speaker 1: with the people in the department, and there is no urgency.
Speaker 1: I think this is for Modular twenty seven or something.
Speaker 1: But there is a process going on, and I must
Speaker 1: say I'm not too nervous about that. We have been
Speaker 1: in the US for seven years, and we will continue
Speaker 1: being present in the US.
Speaker 2: Okay, not too nervous. But you're fully confident, are you
Speaker 2: that the administration is going to grant you this exemption?
Speaker 1: I think you can never be fully confident about anything
Speaker 1: these days. But that's not what keep me awake nights.
Speaker 2: Keep you awake at night then, hokan.
Speaker 1: No, I am, I'm too old for that, so I
Speaker 1: sleep rather well. I'm quite confident about the future of
Speaker 1: our company, and I'm really glad to be back. And
Speaker 1: I think with our result of seven point four, I
Speaker 1: think hopefully that is still a sign of a turnaround
Speaker 1: of the company. Maybe it's too early to say, but
Speaker 1: it's still very positive, combined with also positive singless on
Speaker 1: the sales side. September was the first month where we
Speaker 1: are back into growth.
Speaker 2: Well. We've also been reading about how Europe's auto industry
Speaker 2: is exposed to chip disruptions, potentially from China because of
Speaker 2: the new export restrictions on China made semiconductors from Dutch
Speaker 2: chip maker experience. Has that affected Volvo cars at.
Speaker 1: All, No, but not yet, but we are of course
Speaker 1: this will affect our suppliers, so it's not supplied directly
Speaker 1: to us, but we are monitoring this very closer. And
Speaker 1: I think this is almost coming back in time to
Speaker 1: the pandemic where a similar situation, and I think we
Speaker 1: learned and to really be hands on and really together
Speaker 1: with our suppliers looking into exactly how the supply of
Speaker 1: the ships are coming in. So we are monitoring it
Speaker 1: and very difficult to say anything more today. This is
Speaker 1: a problem the whole industry is facing, so we are
Speaker 1: definitely not alone with it.
Speaker 2: Okay, really great to talk to you this morning. How
Speaker 2: come Samuelson, the CEO Evolvo Cars off the back of
Speaker 2: their results. Thank you so much for making time for
Speaker 2: daybreak here this morning.