Volvo has managed to drive down costs, boost efficiency and increase sales over the past twelve months but its operations are still running at a loss, reports Automotive News. Ford doesn’t release individual figures for Volvo but it’s believed to have lost more than $100 million in the previous quarter.
Rather than attempting to compete with the likes of Mercedes and BMW, Volvo would be better off focusing on differentiating itself through hybrid and alternative-fuel technologies. It’s already shown what’s possible with the ReCharge plug-in concept but the low popularity of hybrids in Europe could also potentially prove to be a major hindrance.