STOCKHOLM -- Volvo Cars expects business to recover in the second half of the year after reporting on Tuesday an operating loss for the first six months as coronavirus lockdowns strained supply chains and forced plant closures.
The Swedish-based carmaker also said that its planned merger with sister company Geely Automobile Holdings had been temporarily put on hold due to Geely Auto's plans to list in China. The companies will resume talks in the autumn.
Volvo returned to solid growth in China during the second quarter and expects a similar upturn in the United States and Europe.
"If the market recovers as we expect, we anticipate sales volumes to return to the levels we saw in the second half of 2019 and it is also our ambition to return to similar profit levels and cash flow," CEO Hakan Samuelsson said in a statement.
Market recovery has allowed the company to resume production in all factories, except the Charleston plant in Ridgeville, S,C., V…