Volvo Cars CEO: dual tech for China and the West is new trade reality
'It's our target now to have two versions of software and silicon components, the computer in the car,' he told Euronews at the EVS38 symposium in Gothenburg, Sweden.
'We need to have a Western version and a Chinese version. That's something we just need to live with and adapt to.'
Volvo Cars has been headquartered in Gothenburg since its creation in 1927, although the firm has been majority owned by China's Geely Holding Group since 2010.
If efforts weren't made to tailor products to different markets, the firm's Chinese R&D could complicate exports to the US, especially as Washington seeks to distance itself from Chinese tech.
In January, the Biden administration finalised a rule banning smart cars from China and Russia over concerns linked to potential US data leaks. Some feared that these cars could also be used by foreign states to interfere with the US electric grid or other critical infrastructure.
'We don't see any risk … that we will be using Chinese technology in the US. That will not happen,' said Samuelsson.
In this year's first quarter earnings report, Volvo Cars reported a drop in profits, which it partly blamed on the 'current turbulence in the broader world economy'.
New US tariffs of 25% on foreign cars and car parts are notably causing a headache for the firm, dampening consumer appetite as well as raising import costs.
In the report, Volvo Cars announced an action plan to improve profitability, 'focusing on the US and China markets, as priorities'.
Samuelsson told Euronews on Monday that he wanted to change the firm's approach to the Chinese market, tailoring it to local demands.
'We need to listen more to the local people in the region and adapt to local habits and tastes — and perhaps also have some special cars for the Chinese market,' he said.
Samuelsson pointed to the new XC70, an extended-range plug-in hybrid recently launched in China, aimed at pulling market share away from competitors like BYD.
Volvo Cars' retail sales decreased by 12% year-on-year in China in the first quarter, with electric vehicles and plug-in hybrids accounting for 10% of this total.
In the US, Volvo Cars' sales jumped by 8% — potentially linked to tariff frontloading — with electric vehicles and plug-in hybrids making up 28% of that total.
Although the firm has signalled a desire to focus more on US and Chinese customers, Volvo Cars still relies heavily on the European market. The region represented nearly half of its total sales for 2024, as well as the same proportion of sales in Q1 2025.
When it comes to manufacturing these vehicles, some are made on Belgian and Swedish sites, while others are made in China and shipped to Europe.
This means that — on certain vehicles — Volvo is exposed to EU duties, introduced last year in response to alleged unfair subsidies from Beijing.
'Tariffs are not going to help the European industry to be more competitive long-term,' said Samuelsson.
'We should have an attitude of free trade and free competition…but realistically that will not happen. I think we're going into a more regional world.'
A recent action plan published by the European Commission suggested that Chinese carmakers operating in the EU may be obliged to enter joint ventures with European companies or license parts of their technology.
Asked how Volvo Cars would be affected given its ties with Geely, Samuelsson suggested the firm would be untouched, underlining that a significant amount of development is still happening in Europe.
'I don't see any problems with the Chinese technology in our cars in this respect…the software products in the car are to a large extent adapted and developed by Volvo,' he said.
Baku Energy Week, a key event in the global energy calendar, attracts over 2,000 delegates and 240 companies annually. Now in its 30th year, it highlights Azerbaijan's commitment to installing 6.5 GW of renewable capacity by 2030, representing over 35% of its energy grid.
The event also underscores Azerbaijan's strategic role in energy diplomacy, with pipelines linking the Caspian Sea to Europe via the Southern Gas Corridor.
Discussions focus on balancing energy security, green transition, and geopolitical cooperation, reflecting Azerbaijan's evolving energy ambitions and partnerships with global players like Germany and Masdar.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
an hour ago
- Euronews
The new 'Tiger economy': Vietnam's 2045 get rich quick plan
Beneath red banners and a gold bust of revolutionary leader Ho Chi Minh in Hanoi's central party school, Communist Party chief To Lam declared the arrival of 'a new era of development' late last year. The speech was more than symbolic—it signalled the launch of what could be Vietnam's most ambitious economic overhaul in decades. Vietnam aims to get rich by 2045 and become Asia's next 'tiger economy'—a term used to describe the earlier ascent of countries like South Korea and Taiwan. The challenge ahead is steep: Reconciling growth with overdue reforms, an ageing population, climate risks and outdated institutions. There's added pressure from President Donald Trump over Vietnam's trade surplus with the US, a reflection of its astounding economic trajectory. In 1990, the average Vietnamese could afford about $1,200 (€1,025) worth of goods and services a year, adjusted for local prices. Today, that figure has risen by more than 13 times to $16,385 (€13,995). Vietnam's transformation into a global manufacturing hub with shiny new highways, high-rise skylines and a booming middle class has lifted millions of its people from poverty, similar to China. But its low-cost, export-led boom is slowing and it faces a growing obstacle to its proposed reforms—expanding private industries, strengthening social protections and investing in technology and green energy—from climate change. 'It's all hands on deck. . . . We can't waste time anymore," said Mimi Vu of the consultancy Raise Partners. The export boom can't carry Vietnam forever Investment has soared, driven partly by US-China trade tensions, and the US is now Vietnam's biggest export market. Once-quiet suburbs have been replaced with industrial parks where trucks rumble through sprawling logistics hubs that serve global brands. Vietnam ran a $123.5 billion (€105bn) trade surplus with the US trade in 2024, angering Trump, who threatened a 46% US import tax on Vietnamese goods. The two sides appear to have settled on a 20% levy, and twice that for goods suspected of being transshipped, or routed through Vietnam to avoid US trade restrictions. During negotiations with the Trump administration, Vietnam's focus was on its tariffs compared to those of its neighbours and competitors, said Daniel Kritenbrink, a former US ambassador to Vietnam. 'As long as they're in the same zone, in the same ballpark, I think Vietnam can live with that outcome," he said. But he added that questions remain over how much Chinese content in those exports might be too much and how such goods will be taxed. Vietnam was preparing to shift its economic policies even before Trump's tariffs threatened its model of churning out low-cost exports for the world, aware of what economists call the 'middle-income trap,' when economies tend to plateau without major reforms. To move beyond that, South Korea bet on electronics, Taiwan on semiconductors, and Singapore on finance, said Richard McClellan, founder of the consultancy RMAC Advisory. But Vietnam's economy today is more diverse and complex than those countries were at the time and it can't rely on just one winning sector to drive long-term growth and stay competitive as wages rise and cheap labour is no longer its main advantage. It needs to make 'multiple big bets,' McClellan said. Vietnam's game plan Following China's lead, Vietnam is counting on high-tech sectors like computer chips, artificial intelligence and renewable energy, providing strategic tax breaks and research support in cities like Hanoi, Ho Chi Minh City, and Danang. It's also investing heavily in infrastructure, including civilian nuclear plants and a $67 billion (€57bn) North–South high-speed railway, that will cut travel time from Hanoi to Ho Chi Minh City to eight hours. Vietnam also aspires to become a global financial center. The government plans two special financial centres in bustling Ho Chi Minh City and in the seaside resort city of Danang, with simplified rules to attract foreign investors, tax breaks, support for financial tech startups, and easier ways to settle business disputes. Underpinning all of this is institutional reform. Ministries are being merged, low-level bureaucracies have been eliminated and Vietnam's 63 provinces will be consolidated into 34 to build regional centres with deeper talent pools. Private business to take the lead Vietnam is counting on private businesses to lead its new economic push—a seismic shift from the past. In May, the Communist Party passed Resolution 68. It calls private businesses the 'most important force' in the economy, pledging to break away from domination by state-owned and foreign companies. So far, large multinationals have powered Vietnam's exports, using imported materials and parts and low cost local labour. Local companies are stuck at the low-end of supply chains, struggling to access loans and markets that favoured the 700-odd state-owned giants, from colonial-era beer factories with arched windows to unfashionable state-run shops that few customers bother to enter. 'The private sector remains heavily constrained," said Nguyen Khac Giang of Singapore's ISEAS–Yusof Ishak Institute. Again emulating China, Vietnam wants 'national champions' to drive innovation and compete globally, not by picking winners, but by letting markets decide. The policy includes easier loans for companies investing in new technology, priority in government contracts for those meeting innovation goals, and help for firms looking to expand overseas. Even mega-projects like the North-South High-Speed Rail, once reserved for state-run giants, are now open to private bidding. By 2030, Vietnam hopes to elevate at least 20 private firms to a global scale. But Giang warned that there will be pushback from conservatives in the Communist Party and from those who benefit from state-owned firms. A Closing Window from climate change Even as political resistance threatens to stall reforms, climate threats require urgent action. After losing a major investor over flood risks, Bruno Jaspaert knew something had to change. His firm, DEEP C Industrial Zones, houses more than 150 factories across northern Vietnam. So it hired a consultancy to redesign flood resilience plans. Climate risk is becoming its own kind of market regulation, forcing businesses to plan better, build smarter, and adapt faster. 'If the whole world will decide it's a can go very fast,' said Jaspaert. When Typhoon Yagi hit last year, causing $1.6 billion (€1.4bn) in damage, knocking 0.15% off Vietnam's GDP and battering factories that produce nearly half the country's economic output, roads in DEEP C industrial parks stayed dry. Climate risks are no longer theoretical: If Vietnam doesn't take strong action to adapt to and reduce climate change, the country could lose 12–14.5% of its GDP each year by 2050, and up to one million people could fall into extreme poverty by 2030, according to the World Bank. Meanwhile, Vietnam is growing old before it gets rich. The country's 'golden population' window—when working-age people outnumber dependents—will close by 2039 and the labour force is projected to peak just three years later. That could shrink productivity and strain social services, especially since families—and women in particular—are the default caregivers, said Teerawichitchainan Bussarawan of the Centre for Family and Population Research at the National University of Singapore. Vietnam is racing to pre-empt the fallout by expanding access to preventive healthcare so older adults remain healthier and more independent. Gradually raising the retirement age and drawing more women into the formal workforce would help offset labour gaps and promote "healthy ageing,' Bussarawan said.
Euronews
2 hours ago
- Euronews
Trump to offer Putin economic incentives to end the war in Ukraine
US President Donald Trump is preparing to meet his Russian counterpart Vladimir Putin in Alaska on Friday to discuss ending the war in Ukraine. He is reportedly ready to present Putin with a proposal that includes several economic concessions to Russia in exchange for peace, according to The Telegraph. Among the incentives would be access to Alaska's natural resources, as well as Ukrainian rare earth minerals and the lifting of some sanctions on Russia's aircraft industry. US Treasury Secretary Scott Bessent and other senior administration officials are reportedly working closely with Trump to finalise the proposals ahead of the summit. In April, Kyiv and Washington signed a deal that gives the US access to Ukraine's minerals. According to the Kyiv School of Economics, Ukraine holds one third of Europe's and 3% of global lithium reserves. Two of Ukraine's largest lithium deposits lie in Russian-held territory and Putin has laid claim to the valuable minerals extracted there. Ukrainians are sceptical Ukrainians in Kyiv on Wednesday voiced scepticism that the planned summit between US President Donald Trump and Russian President Vladimir Putin will bring the war on Ukraine to an end. Trump has threatened 'very severe consequences' if Putin does not agree to stop his war in Ukraine the summit, to be held in Alaska on Friday, though he did not say what those consequences might be. Kyiv residents weren't optimistic of a breakthrough. "In my opinion, nothing is likely to change in the coming days," said a woman who gave her name only as Natalya. "We have already seen numerous times how negotiations have been postponed, failed, and other changes have occurred." Oleksandra Kozlova, 39, head of department in digital agency, echoed her sentiment. "People have already lost hope. Personally, I don't think this round will be decisive," she said. Many Moscow residents were more hopeful. 'This (conflict with Ukraine) must end someday, so I hope that some kind of compromise can certainly be found,' one resident said. 'It's a huge deal, that the first step has already been taken,' another commented. 'There will definitely be an advantage.' Conflicting terms for peace Trump consulted with European leaders earlier on Wednesday, who said the president assured them he would make a priority of trying to achieve a ceasefire in Ukraine when he speaks with Putin on Friday in Anchorage. Prior to Trump announcing the meeting with Putin, his efforts to pressure Russia into stopping the fighting had delivered no progress. The Kremlin's bigger army is slowly advancing deeper into Ukraine at great cost in troops and armour. Russia and Ukraine are far apart on their terms for peace. Moscow presented ceasefire conditions that are nonstarters for Zelenskyy, such as withdrawing troops from the four regions Russia illegally annexed in 2022, halting mobilisation efforts, or freezing Western arms deliveries. For a broader peace, Putin demands Kyiv cede the annexed regions, even though Russia doesn't fully control them, and Crimea, renounce a bid to join NATO, limit the size of its armed forces and recognise Russian as an official language along with Ukrainian. Zelenskyy insists any peace deals must include robust security guarantees for Ukraine to protect it from future Russian aggression.
Euronews
3 hours ago
- Euronews
Europe's wealth: Which nations hold the biggest share?
Did you know EU countries hold only 16.6% of the world's personal wealth? In Europe, this rises to 22.3% when four more countries are included. The US holds more than a third, and China about a fifth. Together, these two powers control 54% of world's wealth according to UBS's Global Wealth Report 2025. The UBS report covers 56 countries and markets, representing over 92% of global wealth. But which European countries hold the largest shares of the world's personal wealth? And what is the total personal wealth of each country? Euronews Business takes a deep dive. Where in Europe holds the largest share of the world's personal wealth? According to the report, global personal wealth reached $471 trillion (€435 trillion) by the end of 2024. The US holds the largest share at 34.7% (€150.9 trillion), followed by China with 19.4% (€84.2 trillion). Japan ranks third with 4.5% (€19.7 trillion). Europe—including the EU, UK, Switzerland, Norway, and Turkey—holds 22.3% of global personal wealth. In Europe, the UK holds the highest share of global personal wealth at 3.84%, closely followed by Germany at 3.76%. France is not far behind with a 3.3% share. Italy (2.25%) and Spain (1.95%) complete the top five in Europe. Not surprisingly, Europe's five largest economies take the top five spots on this list. China larger than Europe's top five combined The combined share of Europe's top five economies (15.1%)—France, Germany, Italy, Spain and UK—is still significantly behind China's share of global personal wealth (19.4%). The Netherlands (1.14%) and Switzerland (1.04%) each hold shares above 1%. The global wealth shares of other European countries are far below this threshold. Nineteen out of 31 countries have shares of less than 0.4%. For several countries, the global wealth share is below 0.1%. They included Luxembourg, Bulgaria, Slovakia, Slovenia, Lithuania, Latvia, Cyprus, Estonia and Malta. In nominal terms, the UK holds €16.7 trillion in personal wealth, followed by Germany (€16.4 trillion) and France (€14.3 trillion). No other European country exceeds the €10 trillion mark. Country totals, not wealth per person It is important to note that these figures show total wealth and national shares. They do not indicate which countries are richer or wealthier at the individual level. Wealth per adult is the measure used for that comparison. In general, countries with higher gross domestic product (GDP) tend to have larger shares of global personal wealth, as shown by the top five European economies. While GDP levels vary greatly, this pattern also applies to several other countries. As for why the US and China hold more than half of global wealth, the report notes: 'A combination of high wealth per adult and a large population makes the US stand out by holding almost 35% of the entire wealth measured in USD. Mainland China, thanks to its large population, holds almost 20% of personal wealth.' Wealth rises in Eastern Europe, declines in the west The overall global increase was faster than the previous year, rising from 4.2% to 4.6% in USD terms. But global wealth growth was uneven, as the total hides clear differences between regions. Eastern Europe recorded the largest jump in total personal wealth in 2024—over 12% increased compared with 2023, slightly ahead of North America. It added 28,000 new millionaires, a 2.9% increase, making the region a strong engine of growth. Total personal wealth in Greater China grew by 3.4% from 2023 to 2024, outpacing Southeast Asia's 2.7%. The Middle East & Africa rose 4.2%, making it the only other region with positive growth. Western Europe and Oceania (both -1.5%) and Latin America (-4.3%) all saw declines, after adjusting for population size. What is personal wealth? Wealth or net worth is defined as the value of financial assets and real assets (principally housing) owned by private individuals, less their debts according to the report. Private pension fund assets are included, but not entitlements to state pensions. Wealth per adult rose in most European countries between 2023 and 2024, though a few saw declines. The Euronews article 'Where in Europe did people's net worth increase the most?' shows how this changed at the personal level. Meanwhile, the richest 10% in the eurozone held 57.3% of total net household wealth in the final quarter of 2024, you can read more on how wealth inequality varies widely across Europe here.
