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Volvo Car Group managed to break-even in 2012 after making a full-year operating income of 18 million Swedish crowns (£1.78 million).
Total revenue for the period was 124.5 billion Swedish crowns, which marked a slump on the year prior as the manufacturer was affected by economic uncertainty in Europe.
In the second half of the year the firm focused its efforts on re-balancing its cost base and organising investments in the long term.
"We are in the midst of perhaps the most intense transformation in the group's history," says Hakan Samuelsson, president and chief executive of Volvo Cars.
"Despite a challenging market situation we continued to invest in important future technologies, such as Volvo Engine Architecture and Scalable Product Architecture. At the same time we managed our cost side effectively."
He expects that this reorganisation will help to reinforce Volvo's future as an independent manufacturer in the premium market.
For 2013, Volvo expects competition to continue to be fierce, but the US and Chinese markets are expected to grow due to increased demand, while it still expects Europe to be negatively affected by the economic situation.