Volvo Cars braces for challenges in 2023 after Q4 profit falls By Reuters

© Reuters. FILE PHOTO: An employee at a Volvo car dealer, wearing a protective mask is seen in a showroom, in Brussels, Belgium, May 28, 2020. REUTERS/Yves Herman/File Photo

Stockholm (Reuters) – Sweden-based Volvo Cars said on Thursday 2023 looked to be another challenging year despite healthy demand for its vehicles as it reported a fall in quarterly profit.

Volvo Cars, which is majority-owned by Chinese automotive company Geely Holding said fourth-quarter operating profits dropped to 3.4 billion Swedish crowns ($322.2 million)from 3.7 billion a year ago.

“While 2023 looks to be another challenging year, we are hopeful that the COVID related supply shortages from China are behind us and that we continue to see steady improvement in the supply of semiconductors,” it said in a statement.

“Despite the global turbulence, uncertainty and our recent price increases, we continue to see healthy demand for our cars,” it said.