Volvo Cars swings into loss on electric vehicles, tariffs
"Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition," chief executive Hakan Samuelsson said in the quarterly earnings report.
The Sweden-based manufacturer owned by China's Geely also took a 1.4-billion-kronor restructuring charge, having announced 3,000 job cuts in May.
The group had booked a net profit of 5.7 billion kronor in the same quarter last year.
Excluding exceptional items, it estimated its quarterly operating profit at 2.9 billion kronor, down from 8.0 billion last year.
Retail sales of cars dropped by 12 percent by volume, while revenue fell by eight percent to 93.5 billion kronor due to lower volumes and the higher value of the Swedish kronor.
That beat the analyst consensus of 88.2 billion kronor compiled by Bloomberg.
Shares in Volvo Cars shot more than seven percent higher as trading got underway on the Stockholm stock exchange.
Volvo Cars announced in April an 18-billion-kronor cost-cutting plan, part of efforts to navigate a car market buffeted by US tariffs and a costly switch to electric vehicles.
It said then it would adapt to the increasing regionalisation in trade.
And on Wednesday it announced it would begin building its XC60 SUV in the United States next year to avoid the 25-percent US tariffs applied to its vehicles.
The company said it would no longer provide financial guidance for 2025 and 2026 due to "external developments and increased uncertainties".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
France 24
3 hours ago
- France 24
Thai-Cambodian border clashes: Trump threatens to withhold trade deals until ceasefire
02:22 27/07/2025 China calls for shared AI future, offering tech to developing countries Asia / Pacific 27/07/2025 Taiwanese voters reject attempt to recall China-friendly lawmakers Asia / Pacific 27/07/2025 Thailand and Cambodia clash despite ceasefire hopes Asia / Pacific 27/07/2025 Thai-Cambodian border conflit: 200,000 thousand people displaced Asia / Pacific 27/07/2025 Thai-Cambodia border clashes continue despite Trump's ceasefire call Asia / Pacific 26/07/2025 Voters in Taiwan reject bid to oust China-friendly MPs in closely watched poll Asia / Pacific 26/07/2025 Civilians flee Thai-Cambodia border zone as death toll rises Asia / Pacific 26/07/2025 Thailand and Cambodia trade accusations as deadly border clashes enter third day Asia / Pacific
France 24
9 hours ago
- France 24
Humanoid robots embodiment of China's AI ambitions
The annual event is primed at showcasing China's progress in the ever-evolving field of artificial intelligence, with the government aiming to position the country as a world leader on both technology and regulation as it snaps at the United States' heels. Opening the event on Saturday, Premier Li Qiang announced China would set up a new organisation for cooperation on AI governance, warning the benefits of development must be balanced with the risks. But in the cavernous expo next door, the mood was more giddy than concerned. "Demand is currently very strong, whether in terms of data, scenarios, model training, or artificial construction. The overall atmosphere in all these areas is very lively," said Yang Yifan, R&D director at Transwarp, a Shanghai-based AI platform provider. This year's WAIC is the first since a breakthrough moment for Chinese AI this January when startup DeepSeek unveiled an AI model that performed as well as top US systems for an apparent fraction of the cost. Organisers said the forum involved more than 800 companies, showcasing over 3,000 products -- the undeniable crowd pleasers being the humanoid robots and their raft of slightly surreal party tricks. At one booth, a robot played drums, half a beat out of time, to Queen's "We Will Rock You" while a man in safety goggles and a security vest hyped up a giggling crowd. Other droids, some dressed in working overalls or baseball caps, manned assembly lines, played curling with human opponents or sloppily served soft drinks from a dispenser. While most of the machines on display were still a little jerky, the increasing sophistication year-on-year was clear to see. The Chinese government has poured support into robotics, an area in which some experts think China might already have the upper hand over the United States. At Hangzhou-based Unitree's stall, its G1 android -- around 130 centimetres (four feet) tall, with a two-hour battery life -- kicked, pivoted and punched, keeping its balance with relative fluidity as it shadowboxed around a ring. Ahead of the conference's opening, Unitree announced it would launch a full-size humanoid, the R1, for under $6,000. 'Digital humans' Most high-tech helpers don't need hardware though. At the expo, AI companions -- in the form of middle-aged businessmen, scantily clad women and ancient warriors -- waved at people from screens, asking how their day was, while other stalls ran demos allowing visitors to create their own digital avatars. Tech giant Baidu on Saturday announced a new generation of technology for its "digital humans" -- AI agents modelled on real people, which it says are "capable of thinking, making decisions, and collaborating". The company recently ran a six-hour e-commerce broadcast hosted by the "digital human" of a well-known streamer and another avatar. The two agents beat the human streamer's debut sales in some categories, Baidu said. Over ten thousand businesses are using the technology already, the department's head Wu Chenxia told AFP. Asked about the impact on jobs -- one of the major concerns raised around widespread AI adoption -- Wu insisted that AI was a tool that should be used to improve quality and save time and effort, which still required human input. For now, few visitors to the WAIC expo seemed worried about the potential ramifications of the back-flipping dog robots they were excitedly watching. "When it comes to China's AI development, we have a comparatively good foundation of data and also a wealth of application scenarios," said Transwarp's Yang.
France 24
15 hours ago
- France 24
Urgent need for 'global approach' on AI regulation: UN tech chief
Doreen Bogdan-Martin, head of the UN's International Telecommunications Union (ITU) agency, told AFP she hoped that AI "can actually benefit humanity". But as concerns mount over the risks posed by the fast-moving technology -- including fears of mass job losses, the spread of deepfakes and disinformation, and society's fabric fraying -- she insisted that regulation was key. "There's an urgency to try to get... the right framework in place," she said, stressing the need for "a global approach". Her comments came after US President Donald Trump this week unveiled an aggressive, low-regulation strategy aimed at ensuring the United States stays ahead of China on AI. Among more than 90 proposals, Trump's plan calls for sweeping deregulation, with the administration promising to "remove red tape and onerous regulation" that could hinder private sector AI development. Asked if she had concerns about an approach that urges less, not more, regulation of AI technologies, Bogdan-Martin refrained from commenting, saying she was "still trying to digest" the US plan. 'Critical' "I think there are different approaches," she said. "We have the EU approach. We have the Chinese approach. Now we're seeing the US approach. I think what's needed is for those approaches to dialogue," she said. At the same time, she highlighted that "85 percent of countries don't yet have AI policies or strategies". A consistent theme among those strategies that do exist is the focus on innovation, capacity building and infrastructure investments, Bogdan-Martin said. "But where I think the debate still needs to happen at a global level is trying to figure out how much regulation, how little regulation, is needed," she said. Bogdan-Martin, who grew up in New Jersey and has spent most of her more than three-decade career at the ITU, insisted the Geneva-based telecoms agency that sets standards for new technologies was well-placed to help facilitate much-needed dialogue on the issue. "The need for a global approach I think is critical," she said, cautioning that "fragmented approaches will not help serve and reach all". As countries and companies sprint to cement their dominance in the booming sector, there are concerns that precautions could be thrown to the wind -- and that those who lose the race or do not have the capacity to participate will be left behind. 'Huge gap' The ITU chief hailed "mind-blowing" advances within artificial intelligence, with the potential to improve everything from education to agriculture to health care -- but insisted the benefits must be shared. Without a concerted effort, there is a risk that AI will end up standing for "advancing inequalities", she warned, cautioning against deepening an already dire digital divide worldwide. "We have 2.6 billion people that have no access to the internet, which means they have no access to artificial intelligence", Bogdan-Martin pointed out. "We have to tackle those divides if we're actually going to have something that is beneficial to all of humanity." Bogdan-Martin, the first woman to serve as ITU secretary-general in the organisation's nearly 160-year history, also stressed the need to get more women into the digital space. "We have a huge gap," she said. "We definitely don't have enough women... in artificial intelligence." The 59-year-old mother of four said it was "a big honour" to be the first woman in her position, to be "breaking the glass ceiling (and) paving the path for future generations". But she acknowledged there was a lot of pressure, "not just to achieve, but to almost overachieve". Bogdan-Martin, who is being backed by the Trump administration to stand for re-election when her four-year mandate ends next year, said she was eager to stay on for a second term. "There is a lot to do." © 2025 AFP
