Volvo Cars feels margin pressure from U.S.-China tariff war

World

15:02 | 07.02.2019

Volvo Cars feels margin pressure from U.S.-China tariff war

Volvo Cars, owned by China’s Geely, reported higher full-year revenue on Thursday, but said its profit margins had slipped and were expected to remain under pressure this year, Reuters reports.

Carmakers have faced rising costs and pricing pressure in some markets due to a trade war between Washington and Beijing in 2018 as well as slower demand from Europe and from China, the biggest autos market.

"For 2019, we see another year of volume growth as we continue to benefit from our strong product program and increased capacity. But we have to be realistic and acknowledge that margins will remain under continued pressure,” Volvo Chief Executive Hakan Samuelsson said in a statement.

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