Volvo had an operating loss of 763 million kronor (738 million yuan) in the period, compared with 724 million yuan in earnings before interest and taxes a year ago, the Gothenburg, Sweden-based company said today in a statement.

Volvo was profitable in the first nine months and expects to report a positive result for the full year, it said.

"There are concerns about consumer confidence given the turbulence of financial markets," CEO Stefan Jacoby said in the statement. "At the same time I'm very pleased about the positive sales developments and the strength of our brand, and the outlook for 2011 remains positive."

Volvo aims to more than double annual sales to 800,000 vehicles by 2020 and challenge luxury-car leaders BMW AG, Audi AG and Mercedes-Benz. It plans to invest as much as 70 billion yuan over the next five years to tap demand in markets including China, where it's building a factory in Chengdu plus an r&d center.

Revenue rose 5.9 percent to 26 billion yuan in the quarter, while global car sales gained almost 28 percent to 103,119 vehicles. Volvo increased its market share in all regions compared with a year earlier.

Volvo warned on Aug. 17 that economic instability could hit auto demand in the second half. Ford Motor Co. sold Volvo to Geely last year for about 9.6 billion yuan.