Volvo automobiles seen exterior a Volvo dealership in Edmonton, AB, Canada, on February 02, 2025.
Nurphoto | Nurphoto | Getty Pictures
Sweden-based automaker Volvo Vehicles plans to vary tack within the U.S. as Washington’s commerce tariffs take their toll.
Volvo Vehicles, 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 Vehicles, which is extensively thought-about as one of the uncovered European carmakers to U.S. tariffs, mentioned the consequence displays an ongoing difficult atmosphere for the automotive trade. The corporate mentioned it was additionally impacted by a beforehand introduced one-off non-cash impairment cost of 11.4 billion kronor.
Shares of Volvo Vehicles rose almost 7% in early morning offers. The inventory worth stays down greater than 20% year-to-date.
The second-quarter earnings come shortly after Volvo Vehicles launched plans so as to add its best-selling XC60 sports activities utility car to the manufacturing line of its U.S. automobile 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 Vehicles 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 assessment their product methods.
Volvo Vehicles CEO Håkan Samuelsson mentioned 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 start with, we need to fill our manufacturing unit we’ve in South Carolina. It ought to be the strategic asset it was meant to be. So, we’ve to put it to use extra,” Samuelsson advised CNBC’s “Europe Early Version” on Thursday.
“Second, after all, now with the tariffs, it is vitally pure to herald a [car model with] big-selling quantity. We’re bringing within the XC60 SUV,” he added.
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