Volvo Cars (VOLCARb.ST) said on Thursday 2023 was likely to be another challenging year, despite healthy demand for its vehicles, as the Swedish carmaker reported a fall in quarterly profit.
Volvo Cars, which is majority-owned by Chinese automotive company Geely Holding (0175.HK), said its fourth-quarter operating profit dropped to 3.4 billion crowns ($322.2 million)from 3.7 billion crowns a year earlier.
Profits were hit by high lithium prices, and having to buy semiconductors and logistics in the spot market, which can be more expensive than under long term contracts.
Volvo Cars and its peers have faced lingering chip shortages over the past year that have periodically hit manufacturing, with the Sweden-based company forced at times to halt production at some factories temporarily.
Other supply chain issues, the energy crisis and red-hot inflation have also made life tougher for the company.
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