Volvo Cars Faces Heavy Loss on EVs as Tariffs Bite

Volvo Faces Q2 Loss Amid EV Costs and U.S. Tariffs

Net loss of 8.1 billion kronor ($830 m) reflected a 11.4‑billion‑kronor writedown on the EX90 SUV and ES90 sedan, production delays, higher development costs, and now a 25‑percent U.S. tariff that turned sales unprofitable.

Leadership Notes

CEO Hakan Samuelsson highlighted that demand is under pressure from macroeconomic uncertainty, tariff‑related concerns, and tougher competition.

Restructuring Charges

• 1.4 billion‑kronor restructuring charge following 3,000 job cuts announced in May.
• Previous quarter net profit of 5.7 billion kronor; operating profit down to 2.9 billion from 8.0 billion last year.

Sales Impact

Retail sales dropped 12 % by volume; revenue fell 8 % to 93.5 billion kroner, beat Bloomberg’s analyst consensus of 88.2 billion.

Market Reaction

Volvo shares jumped more than seven percent as trading opened on the Stockholm exchange.

Cost‑Cutting Plan

April announcement of an 18‑billion‑kronor cost‑cutting plan aimed to navigate U.S. tariffs and the costly EV transition.

Regionalisation Strategy

Commenced building the XC60 SUV in the U.S. next year to sidestep the U.S. tariff.

Guide Discontinuation

Company will no longer provide guidance for 2025 and 2026, citing external developments and increased uncertainties.