Despite everything, Volvo says demand for cars is holding up.
Speaking to Reuters on Thursday (September 24), chief executive Hakan Samuelsson said demand had rebounded in July and August.
Over the second half the Swedish automaker now expects to sell about as many cars as it did last year.
Back in 2019 it set a sixth straight annual sales record of over 700,000 cars.
Samuelsson says Volvo plants in Sweden and Belgium are now running at full tilt, though it has spare capacity at factories in the U.S. and China.
Merger plans look more uncertain.
Earlier this year Volvo said it would unite with sister company Geely Automobile.
But that’s on hold while the Chinese firm works to list its shares on China’s Nasdaq-like STAR market.
Samuelsson says internal talks are under way, and there should be news on a plan before the end of the year.
Meanwhile the firm is rapidly going electric.
Its first fully battery-powered car - the XC40 Recharge P8 SUV - starts production this month.
After that, Volvo aims to launch one electric vehicle per year.
And have half of all the cars it sells be fully electric by 2025.