This {photograph} exhibits a partial view of a Volvo X30 electrical automotive with the corporate brand on the Volvo manufacturing facility in Ghent on April 25, 2025. This manufacturing facility will produce the Volvo X30 100% electrical mannequin for the European market.
Nicolas Tucat | Afp | Getty Pictures
Shares of Sweden’s Volvo Automobiles tumbled as a lot as 19% on Thursday morning, placing the corporate on observe for its worst buying and selling day ever.
The automaker, which is owned by China’s Geely Holding, posted a considerable drop in fourth-quarter working revenue, citing the impression of U.S. tariffs, destructive foreign money results and weak demand.
Volvo Automobiles stated fourth-quarter working revenue excluding gadgets affecting comparability fell by 68% to 1.8 billion Swedish krona ($200.46 million) in comparison with the identical interval a yr prior.
“We’ve a really difficult market, particularly in China, very powerful competitors. All of our European colleagues have the identical downside,” Volvo Automobiles CEO Hakan Samuelsson instructed CNBC’s “Europe Early Version” on Thursday.
He added the discontinuation of EV incentives within the U.S. and China had been additionally contributing to “a really difficult exterior setting.”
“However internally we’ve had superb work carried out with reducing our prices and securing a optimistic money stream, in order that I’d spotlight as an important optimistic issues that we’ve reached through the yr,” he added.
Shares of Volvo Automobiles had been final seen down 18.1%, having pared a few of its earlier losses. A single-session fall of greater than 11.2% would mirror the agency’s worst buying and selling day ever.
A tricky yr forward
The U.S. and EU agreed to a framework commerce deal in July final yr, one which noticed the Trump administration impose a blanket tariff of 15% on most EU items, a big discount from Trump’s menace of 30% and virtually halving the tariff charge on Europe’s auto sector from 27.5%.
Business teams, which tentatively welcomed the commerce deal on the time, expressed deep concern in regards to the prices related to the brand new tariffs.
Volvo Automobiles has lengthy been thought-about one of the vital uncovered European carmakers to U.S. tariffs.
Wanting forward, Volvo Automobiles stated deliveries of its new and absolutely electrical EX60 mid-size SUV will ramp up through the second half of 2026.
Nevertheless, it warned the yr forward is prone to be one other difficult one, with continued pricing stress, tariff results, regulatory uncertainty and softer shopper sentiment prone to weigh on the business.
