This article was first published on or about August 16, 2017, on my Seeking Alpha Marketplace site, where subscribers get early access to many of my articles. You can view these articles here: https://seekingalpha.com/author/anton-wahlman/premium-articles
Volvo reported U.S. July 2017 month sales:
The poor June results were exacerbated in July, with a decline of 18.8%. Much of this decline is the result of selling down the remaining units of the old XC60, with the new one starting to arrive in U.S. dealerships only very near the end of July.
Sales of the old XC60 were down 36.6%. In August, the new XC60 should be available in sufficient quantities to lift the whole company materially. Even in July, the new XC60 already compensated for the decline in the sale of the old one, so you can imagine what August and September have in store. They should mark a recovery for Volvo in the U.S.
The flagship XC90 continues to disappoint this year. It was down 12.7%. For the year, it’s down a whopping 23% and the chief reason Volvo is down in the U.S. this year.
Another contributor is that the old V70 station wagon is no longer. It’s various replacements in the 60 and 90 series just aren’t selling nearly as well either.
Meanwhile, the S60 sedan has also fallen dramatically -- 51.5% in July. There will be an all-new S60 in about a year from now, but this means a headwind until then.
Volvo has an ambitious program ahead of itself for the next two years, with the entire 60 series of cars rolling out, followed by the 40 series and five all-electric cars starting in 2019, with the second one in 2020. Volvo seems to be one of the most serious companies in terms of electrification.
Disclosure: I am/we are short TSLA.
Additional disclosure: At the time of submitting this article for publication, the author was long FCAU and GOOGL, and short TSLA. However, positions can change at any time. The author regularly attends press conferences, new vehicle launches and equivalent, hosted by most major automakers.