Volvo automobiles seen exterior a Volvo dealership in Edmonton, AB, Canada, on February 02, 2025.
Nurphoto | Nurphoto | Getty Photos
Sweden-based automaker Volvo Automobiles plans to alter tack within the U.S. as Washington’s commerce tariffs take their toll.
Volvo Automobiles, which is owned by China’s Geely Holding, on Thursday reported that second-quarter working revenue excluding objects affecting comparability fell to 2.9 billion Swedish kronor ($297.83 million), down from 8 billion throughout the identical time final yr.
Second-quarter income dropped to 93.5 billion kronor, in comparison with 101.5 billion kronor over the identical interval in 2024.
Volvo Automobiles, which is broadly thought-about as probably the most uncovered European carmakers to U.S. tariffs, stated the outcome displays an ongoing difficult setting for the automotive trade. The corporate stated it was additionally impacted by a beforehand introduced one-off non-cash impairment cost of 11.4 billion kronor.
Shares of Volvo Automobiles rose almost 7% in early morning offers. The inventory value stays down greater than 20% year-to-date.
The second-quarter earnings come shortly after Volvo Automobiles launched plans so as to add its best-selling XC60 sports activities utility automobile to the manufacturing line of its U.S. automotive plant in Ridgeville exterior Charleston in South Carolina.
Manufacturing of the XC60, which has been the agency’s best-selling mannequin globally for years, is scheduled to start out on the manufacturing unit in late 2026.
On the similar time, Volvo Automobiles has began pulling sedans and station wagons from its U.S. portfolio amid waning curiosity, Reuters reported Thursday. It comes as U.S. tariffs of 27.5% on European-made automobiles and 100% on EVs imported from China have compelled automakers to overview their product methods.
Volvo Automobiles CEO Håkan Samuelsson stated the corporate would “positively not” pull out of the U.S. market, the place it has been current for 70 years.
“What we’re doing is to begin with, we need to fill our manufacturing unit we have now in South Carolina. It must be the strategic asset it was meant to be. So, we have now to put it to use extra,” Samuelsson informed CNBC’s “Europe Early Version” on Thursday.
“Second, after all, now with the tariffs, it is extremely pure to herald a [car model with] big-selling quantity. We’re bringing within the XC60 SUV,” he added.
