Volvo Q2 operating profit slumps as tariffs take hold
Its quarterly operating profit excluding items affecting comparability fell to 2.9bn Swedish crowns (R5,318,468,482) from 8.0bn (R14,654,936,000) a year ago.
"Demand remains soft and volatile, impacted by weakening consumer confidence and the introduction of additional tariffs, which continue to pose challenges for the automotive sector," the company said in its earnings report.
Its gross margin, a metric investors and analysts are looking at closely to assess the impact of the tariffs, fell to 13.5% compared to 18.2% in the first quarter, adjusted for one-offs it fell to 17.7%
Volvo Cars is the first European carmaker to report in what is expected to be a gloomy reporting season as weak demand for EVs and growing competition from China hits at the same time as US tariffs mount.
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Daily Maverick
38 minutes ago
- Daily Maverick
Ground control to FlySafair: we have a problem
Long queues, missed appointments, and almost two dozen cancelled flights marked day one of FlySafair's pilot strike, as more than 200 pilots downed their controls in a labour showdown with the airline. However, by the end of the day, the airline had agreed - under pressure - to participate in the mediation process as requested by the Commission for Conciliation, Mediation and Arbitration (CCMA). At OR Tambo International Airport, stranded passengers and grounded pilots found themselves on the same side of the runway as fallout collateral damage in the escalating dispute. Turbulence at the top 'They said there weren't any cancellations but I only found out my flight was cancelled this morning,' said Masego, a frustrated traveler who was due to fly to Cape Town. She was one of many travellers queuing at the FlySafair terminals who had been issued vouchers for their missed flights. Masego didn't want to share her full name for fear that FlySafair would decline her request for a refund rather than a flight voucher. The standoff is not just about the two primary tabled issues — pay and rostering — but also a representation of pilots asserting themselves in what they deem an increasingly airline-dominant space post the Covid-19 pandemic. 'This isn't just about the money,' said one FlySafair pilot to Daily Maverick on condition of anonymity. 'We're professionals, not just numbers on a roster.' How much is a pilot worth? Of FlySafair's roughly 300 pilots, about two-thirds are represented by trade union Solidarity and rejected a proposed 5.7% wage increase, instead demanding what Solidarity describes as a 'market-related' adjustment closer to 10.5%. According to data from Payscale and Glassdoor, commercial pilots earn anywhere between R300,000 to well over R1-million — and FlySafair itself has noted that its pilots earn up to R2.3-million per annum. While this appears to be lucrative, a pilot interviewed by Daily Maverick stated that the higher end of salaries was usually reserved for very senior captains, such as a pilot with 20 years' experience, with the median being closer to the R300,000 mark. The second sticking point is the way rosters are structured. According to a pilot, rosters are released on the 24th of each month, typically with five days on, two days off. But last-minute changes mean that even on scheduled off days, pilots struggle to plan their lives. 'It's not like you're knocking off work at 4pm on a Friday,' said one pilot. 'You might get home from that last shift at midnight, and then on Monday your first flight is at 5am.' 'We don't have complete access to the rosters, but the pilots are saying 'I'm tired,'' said Helgard Cronjé , deputy general secretary at Solidarity. 'You can't put a price on missing your kid's rugby match.' FlySafair maintains otherwise. 'Fatigue is not a concern,' said chief marketing officer Kirby Gordon in a previous written response to Daily Maverick. The same reply also stated that 'there are no concerns for flights being disrupted as a result of this industrial action'. This did not turn out to be the case, as at least 26 flights were cancelled on Monday morning, 21 July 2025. Pilots stress that fatigue isn't just a lifestyle issue — it's a safety concern. According to a pilot, many are now flying 90 to 95 hours per month, near the legal maximum. 'That's not sustainable in the long run. People think 90 hours (per month) is nothing because it's less than a nine-to-five job,' said one pilot. 'But they don't realise that flying is mentally and physically demanding. You're in high-stress environments, constantly alert, and that takes a toll.' And it's a toll many no longer want to pay. Pilots estimate 80 colleagues have left the company in the past year, with many heading overseas. FlySafair bowed to pressure after about 90% of pilots affiliated with labour group, Solidarity, declared their willingness to strike. 'FlySafair underestimated how disruptive the lock-out (would) be. It is costing them too much and the passengers are paying the price,' said Cronjé, adding that the airline had indicated it would only be willing to start the negotiation process by Wednesday. 'As a result, thousands more passengers will be affected before FlySafair comes to the table,' she said. Airline dominance Following the Covid-19 pandemic, pilots were furloughed en masse. As aviation resumed, airlines dominated the hiring terms. Pilots say they are now pushing back. Solidarity claims FlySafair refused to provide financial data to justify the wage freeze. 'When we asked for the financials to back this up, they refused,' said Cronjé. 'We believe the company is profitable enough to meet our demands, or at least to come to the table with a better offer.' FlySafair confirmed to Daily Maverick that no such financial disclosures were made, stating that this was not standard practice. 'Salaries are typically determined by market dynamics,' said the company. 'Our pilots are not equity stakeholders — they have not invested capital or assumed financial risk.' Dr Joachim Vermooten, transport economist and former airline executive, told Daily Maverick that low-cost airlines derived profit from high aircraft utilisation and passenger density. He cited European examples as proof that low-cost carriers could be highly profitable. FlySafair, for its part, claims that its current offer, while described as a 5.7% raise, actually constitutes an 11.29% cost-to-company increase. 'This is a generous offer, particularly in a low-inflation environment where many major corporations, including banks, are offering increases closer to 4%,' the airline said. What this means for you If you have booked flights with FlySafair, you should check the updates page before you make plans or even show up at the airport — particularly for flights from Tuesday, 22 July up to and including Monday, 28 July. While FlySafair says contingency crews are in place, delays and cancellations remain likely, and it's likely to be a bumpy journey ahead until the dispute is reconciled. If your flight is affected, you have three choices: Rebook your trip by selecting a different flight on the same route, or pick entirely new flights for a future journey. Cancel your booking and receive a FlySafair voucher for the full value of your original flight. This credit will be loaded to your FlySafair wallet and is valid for 12 months. If you'd prefer a full cash refund instead, you're also welcome to cash out your voucher at any time. The CCMA has been approached to mediate the matter, which might result in a faster resolution.
The Citizen
6 hours ago
- The Citizen
Brake failure reignites Magoebaskloof safety concerns
TZANEEN – The truck carrying gas cylinders on the Magoebaskloof pass last Wednesday, July 16, suffered brake failure, renewing concerns over heavy vehicles illegally using the route. A S P E C I A L I S T ' S O P I N I O N Peter Pilusa, a Tzaneen-based diesel mechanic and brake system specialist, said such failures are often avoidable. 'Brake failure usually results from poor maintenance, overheating, or driver error,' he explained. 'Many drivers descend the pass relying only on service brakes, rather than using engine retarders or lower gears. This causes the brakes to overheat, a condition known as brake fade.' Pilusa said that worn brake linings, air system issues, and leaking brake fluid also contribute to such incidents. He stressed the importance of thorough pre-trip inspections, especially before navigating steep routes like Magoebaskloof. 'Regular inspections, especially before tackling a pass like Magoebaskloof, are crucial,' he said. Brake fade, particularly in trucks with air brake systems, occurs when overheated components can no longer produce the friction needed to stop the vehicle, leaving drivers with little control on downhill slopes. Experts are calling on transport companies to improve driver training, especially for mountain pass navigation, and enforce strict vehicle maintenance. Authorities are also being urged to increase brake check enforcement at key points along major passes. The incident adds to a growing list of similar cases on Magoebaskloof in recent months. Pilusa said he hopes this latest event encourages transport operators and drivers to consider appropriate and lasting changes. 'The road has always been steep,' he said. 'What needs to change is how seriously we take safety and maintenance.' C O M M U N I T Y C O M M E N T S 'Fix the Georges Valley road properly. But even then it wont stop the trucks from making use of the R71. If companies don't take accountability for their fleet we will forever be fighting a losing battle.' – Magda Jacobs Koekemoer 'Company must bear code of conduct and road detector if someone pass the destination to report immediately.' – Janson Raptor 'Road has no problem, inexperienced, incompetent drivers, mechanical fault trucks is the problem.' – Bra Kaizer Kgops 'All trucks should use R81 which is much safer and any truck found on the R71 be fined or owner lose operating license.' – Gavin Monama 'As it is Magoebas is dangerous enough for any vehicle…. WHY would any company allow their truck to travel this route????? Mooketsi is only 10km longer BUT safe and a lot faster!' – Janine Windell 'Have traffic police actually do their duty at the turnoff and direct trucks onto the R81. Of course, that road is in SERIOUS need of repair! It's bad for tourism on that road to doom…' – Zu Groenewald At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
7 hours ago
- The Citizen
Sasol Westville packs Nelson Mandela Day hampers
THE Sasol Westville office celebrated International Mandela Day on Thursday, July 17, by packing and distributing nutritious hampers to vulnerable groups, particularly those affected by the withdrawal of international NGO funding. Sasol employees and those from the National Petroleum Refiners of South Africa (Natref), as well as from the eThekwini Department of Social Development (DSD), which partnered with the chemicals and energy company for the initiative, spent 67 minutes preparing the hampers which were distributed to two KwaMashu-based NGOs, including the elderly home KwaMashu Christian Care Society. The acting head of department at DSD, Maphili Mhlongo, said the department supports and appreciates the initiative, which is a result of contributions made by Sasol employees. 'We really appreciate this partnership as the department of Social Development, which works with the vulnerable members of our communities. This gesture will mean a lot to people who will sleep with smiles on their faces,' said Mhlongo. Also read: Westville cops caution elderly about fraud on Nelson Mandela Day The partnership between DSD and Sasol started in 2024. DSD Chief Director of the eThekwini cluster, Fezile Luthuli, said the hampers were not only about their contents but also about how they make the recipients feel. 'We really appreciate and support this initiative and we are really looking forward to this partnership which we wish to see grow where we can easily call for emergency help for the communities we work with,' said Luthuli, who also applauded the two Sasol Westville employees who have contributed towards Nelson Mandela Day initiatives for the past 10 years. The two Sasol employees have been donating from their pockets towards Nelson Mandela Day initiatives for the past 10 years. For more from the Highway Mail, follow us on Facebook , X and Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Click to subscribe to our newsletter here At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
