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Volvo Cars to Book $1.2bn Charge on Tariffs and Launch Delays
VÄSTRA GÖTALAND COUNTY, SWEDEN, JUL 17 – Volvo Cars booked a $1.2 billion non-cash charge in Q2 2025 due to electric vehicle launch delays and U.S. tariffs, impacting profitability but continuing investment in EV technology.
- Taking a $1.2 billion impairment charge, Volvo Cars sank deep into the red due to delays to EX90 and ES90 production and rising tariffs in Q2 2025.
- Amid U.S. import levies, 27.5% duties on European cars and 100% EV tariffs have forced strategy shifts, with software issues delaying EX90 ramp-up by two years, as Fredrik Hansson said, leading to a €900 million charge.
- In Q2, revenue fell 8% to 93.5 billion kronor, and 1.4 billion kronor restructuring charges eliminated 3,000 jobs, mainly in Sweden.
- Shares of Volvo Cars jumped over 7% on the Stockholm exchange, and CEO Håkan Samuelsson said he would `definitely not` pull out of the U.S., adding that the aim is to fully utilise the South Carolina factory.
- Production of the EX30 for Europe will shift to Ghent, Belgium, in the second half of this year, and the EX60 will start production in Sweden next year, underpinning Volvo's next-generation EV roadmap.
83 Articles
83 Articles
Volvo Cars, the Swedish car brand, has announced a marked decline in its adjusted operating profits during the second quarter.The news, reported by Marie Mannes and edited by Stine Jacobsen, highlights the pressure that tariffs are exerting on the demand for its products.This situation has created an environment of uncertainty for the company that seeks to remain competitive in the current economic landscape.The impact of tariffs on demandAccord…
Volvo Cars releases its results for the second quarter. DN's Jonas Fröberg answers three questions.
Volvo Cars swings into loss on EVs, tariffs
STOCKHOLM - Volvo Cars announced on Thursday it had swung into loss in the second quarter, after it took an impairment charge for its electric cars, booked restructuring charges and dealt with a slower, tariff-troubled market.
Volvo Cars' Q2 operating profit beats expectations
Volvo Cars today reported a sharp decline in second-quarter operating profit that nonetheless exceeded analyst expectations, sending shares up, though the company continues to face headwinds from tariffs and softening demand.
TechXplore
Volvo Cars swings into loss on electric vehicles, tariffs
Volvo Cars announced on Thursday it had swung into loss in the second quarter, after it took an impairment charge for its electric cars, booked restructuring charges and dealt with a slower, tariff-troubled market.
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