Volvo Cars' fully electric sales rose 18%, yet overall volumes fell 10% to 156,965 in the December‑to‑February quarter. The Sweden‑based group blamed US import tariffs and weak demand in China, withdrew earnings guidance and launched a cost‑reduction programme that includes about 3,000 mostly white‑collar job cuts.

Volvo Cars reported selling 156,965 vehicles in the December‑to‑February quarter, a 10% decline versus the same period a year earlier, citing “tough market conditions” including US import tariffs and a prolonged New Year holiday in China. Key figures - Units sold: 156,965 (down 10% year‑on‑year). - Fully electric (BEV) sales: up 18%, about 25% of total volumes. - Total electrified volumes (BEV + PHEV): down 2%, about 49% of sales. - Regional exposure: roughly 16% of cars sold in the US and around 20% in China in 2024. Production and product plans - Volvo said it plans to raise output of the new fully electric EX60 SUV, with Swedish production due to start in spring to meet demand in key markets such as Germany. Tariffs and US exposure - Credit ratings agency S&P flagged US import tariffs as a major headwind when it cut the outlook on Volvo Cars’ BB+ rating to negative. - The group produces just one model in the US and imports the rest, increasing its sensitivity to US tariff moves. Last year’s tariff changes moved from 2.5% to 27.5% before being cut to 15% and applied retrospectively; a recent court decision temporarily reinstated higher duties. Financial outlook and cost measures - Volvo withdrew its earnings guidance and launched a cost‑reduction programme, including plans to cut roughly 3,000 mostly white‑collar roles. - S&P expects profitability and cash generation after investments to be pressured in 2025–26, but said substantial cost savings should partly offset the impact. - The company, majority‑owned by China’s Geely Holding, reported a 68% fall in fourth‑quarter profit after pricing measures tied to weak demand. Market reaction - Investors reacted cautiously to the volumes disclosure and shares were roughly flat in morning trade.

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Volvo Cars will publish its first‑quarter earnings report on 29 April.

This article was created with AI assistance.