Volvo Cars switches gears in the U.S. as Trump’s tariffs bite
Volvo vehicles were seen outside a Volvo dealer in Edmonton, EU, Canada on 02 February 2025.
Nurphoto | Nurphoto | Getty Images
Swedish -based automobile manufacturer Volvo Cars’ shares increased by 9% on Thursday, and the company’s second quarter activity profit, despite a sharp decrease in the last year.
Volvo Cars owned by Geely Holding in China on Thursday reported Except for items affecting comparison, the second quarter activity profit fell from 8 billion to 2.9 billion Swedish kron ($ 297.83 million) last year.
The second quarter income fell to 93.5 billion crowns in 2024 compared to 101.5 billion crowns in the same period.
Volvo Cars, which is considered one of the most exposed to US tariffs as one of the European car manufacturers, said the result reflects a challenging environment for the automotive industry. The company is a Announced Previously One -time non -cash value fee of 11.4 billion crowns.
Analysts in JPMorgan, in a research note, despite being thrown down, the second quarter of Volvo Cars was still better than expected.
Volvo Cars shares were last seen with an increase of 8.9%. The stock price decreases more than 20% annually.
The second quarter earnings come shortly after Volvo cars launching It plans to add the best -selling XC60 Sports auxiliary vehicle to the production line of the US automobile factory in Ridgeville, except Charleston in South Carolina.
The production of XC60, the best -selling model of the company for years, is scheduled to start in the factory in the late 2026.
At the same time, Volvo Cars began to attract sedans and station wagons from the US portfolio. Reuters reported Thursday. 27.5% tariffs in European -European cars and 100% of the houses imported from China forced automobile manufacturers to review their product strategies.
Volvo Cars CEO Håkan Samuelsson said the company will withdraw from the US market for 70 years.
Samuelsson, said in a statement on Thursday, “First of all, we want to fill our factory in South Carolina. It must be the strategic asset that should be. So we should use more.”
“Second, of course, now with tariffs, a [car model with] Large -selling volume. We’re bringing the XC60 SUV, “he added.
