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Volvo Cars has reported its first operational loss since the 2021 stock market market list in Stockholm, because higher American rates and restructuring costs harm its profitability.
The Swedish group, owned by China’s GEYY, reported an operational loss of SKR10BN ($ 1 billion) on Thursday for the quarterly from April to June, compared to a profit from SKR8BN a year earlier and an average estimate of the analysts of a profit from a profit, according to S&P Capital IQ.
Turnover also fell by 8 percent to SKR 93.5 billion, because the sale of retail trade fell in markets, including Europe and China.
“The question remains under pressure from the macro-economic environment, rate-related uncertainties and harder competition,” said CEO Håkan Samuelsson in a statement. “All this continues to put pressure on volumes and profitability for us, as well as for the entire automotive sector.”
The results of Volvo cars start to be some analysts to be a challenging profit season for the car industry, while companies are struggling with the Fallout of the trade war of US President Donald Trump.
Earlier in the week, the company warned of a one-off indictment of Skr11.4BN and said it would not have been able to sell its new ES90 DIE in China in the US due to the 25 percent rate of Trump on the import of foreign cars.
In addition to the high exposure to rates, Volvo Cars has struggled with launch delays and software problems with its flagship EX90 Sport Utility Vehicle.
Exclusively the one-off indictment, however, Bernstein analyst Harry Martin noted that the results of the company were better than expected, because it sold more emission credits in the second quarter than in the entire 2024. Rival Carmakers who stay behind the sale of electric vehicles have bought credit of Volvo-cars to meet the EU-SturereGels.
To tackle the deteriorating business environment, the company has announced 3000 job losses worldwide to save costs.
It also increases production in South Carolina to compensate for the rates and revealed on Wednesday that from the end of 2026 it would produce its XC60-seal SUV in the US.
