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Volvo Cars third quarter profit roses the automaker betterfit benefitted from the effects of its one point nine billion dollar cost saving program. That's even as Volvo Cars sales are down eight percent this year through September. So to bring it all together and please to welcome the Automaker's CEO Hocant Samuelson to the program. Good morning, Hokan. Thank you so much for making time for us. As I say, you've done well nonprofit here, but sales less, so less, Rosie.
Are you concerned about demand? Well, how's your outlook change going forward?
Now? I'm quite confident because we know really why we were down in cell. We had very high sales of our smallest electric car last year, and that was made in China and then we need to move it to Europe and localize it in Belgium, and then we lost production capacity. But now we are back using that car, so I'm not too nervous about the volume. I'm more concerned that we continue with our actions on profitability, coming back to a solid cash flow. That's my number one priorities.
Well, you hint at the fact that you're more exposed to US harffs than many European rivals. You've moved some production already. Is there going to be more of that, more moving production?
Yes, I don't think you should call it moving production, but we will increase the utilization in the factory in Charlestone. We need to introduce more cars, but they will be new cars that they will not be moved from Europe. But we need to really utilize the factory to a much higher degree than we do to date. And that's really a very important part of our turnaround in America as well. We need to be industrially present. We need to be an American company in the producing closer to our customers.
But of course you do have a Chinese owner. And I believe you're waiting for feedback from the US Commerce Department on whether you'll be allowed to sell future models into the US. Have you heard anything back yet from the Commerce Department?
Now, there is a constant dialogue with our legal expert with the people in the department, and there is no urgency. I think this is for Modular twenty seven or something. But there is a process going on, and I must say I'm not too nervous about that. We have been in the US for seven years, and we will continue being present in the US.
Okay, not too nervous. But you're fully confident, are you that the administration is going to grant you this exemption?
I think you can never be fully confident about anything these days. But that's not what keep me awake nights.
Keep you awake at night then, hokan.
No, I am, I'm too old for that, so I sleep rather well. I'm quite confident about the future of our company, and I'm really glad to be back. And I think with our result of seven point four, I think hopefully that is still a sign of a turnaround of the company. Maybe it's too early to say, but it's still very positive, combined with also positive singless on the sales side. September was the first month where we are back into growth.
Well. We've also been reading about how Europe's auto industry is exposed to chip disruptions, potentially from China because of the new export restrictions on China made semiconductors from Dutch chip maker experience. Has that affected Volvo cars at.
All, No, but not yet, but we are of course this will affect our suppliers, so it's not supplied directly to us, but we are monitoring this very closer. And I think this is almost coming back in time to the pandemic where a similar situation, and I think we learned and to really be hands on and really together with our suppliers looking into exactly how the supply of the ships are coming in. So we are monitoring it
and very difficult to say anything more today. This is a problem the whole industry is facing, so we are definitely not alone with it.
Okay, really great to talk to you this morning. How come Samuelson, the CEO Evolvo Cars off the back of their results. Thank you so much for making time for daybreak here this morning.