Volvo upgrades profit outlook despite China slowdown

Berlin

VOLVO Car Group boosted its earnings goal for the year, saying the robust European market would outweigh a slowdown in China, where pressure to discount is increasing.

"The price situation in China is getting tougher," chief executive officer Hakan Samuelsson said in a phone interview on Wednesday. "The important thing is to see the strength of having Volvo global. We can balance out softer development in China." The carmaker said it now expects a "substantial" increase in 2015 profit. Volvo had previously forecast a "clear" improvement in sales and profitability.