Sweden's Volvo Cars switches gears in the U.S. as tariffs bite
Volvo Cars, which is owned by China's Geely Holding, on Thursday reported that second-quarter operating profit excluding items affecting comparability fell to 2.9 billion Swedish kronor ($297.83 million), down from 8 billion during the same time last year.
Second-quarter revenue dropped to 93.5 billion kronor, compared to 101.5 billion kronor over the same period in 2024.
Volvo Cars, which is widely considered as one of the most exposed European carmakers to U.S. tariffs, said the result reflects an ongoing challenging environment for the automotive industry. The company said it was also impacted by a previously announced one-off non-cash impairment charge of 11.4 billion kronor.
The second-quarter earnings come shortly after Volvo Cars launched plans to add its best-selling XC60 sports utility vehicle to the production line of its U.S. car plant in Ridgeville outside Charleston in South Carolina.
Production of the XC60, which has been the firm's best-selling model globally for years, is scheduled to start at the factory in late 2026.
At the same time, Volvo Cars has started pulling sedans and station wagons from its U.S. portfolio amid waning interest, Reuters reported Thursday. It comes as U.S. tariffs of 27.5% on European-made cars and 100% on EVs imported from China have forced automakers to review their product strategies.
Volvo Cars CEO Håkan Samuelsson said the company would "definitely not" pull out of the U.S. market, where it has been present for 70 years.
"What we are doing is first of all, we want to fill our factory we have in South Carolina. It should be the strategic asset it was intended to be. So, we have to utilize it more," Samuelsson told CNBC's "Europe Early Edition" on Thursday.
"Second, of course, now with the tariffs, it is very natural to bring in a [car model with] big-selling volume. We are bringing in the XC60 SUV," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
19 minutes ago
- USA Today
UnitedHealth complies with DOJ criminal, civil requests, filing shows
July 24 (Reuters) - UnitedHealth on Thursday publicly confirmed it was under investigation by the Department of Justice and said it was complying with both criminal and civil requests from the federal agency. The disclosure was made in a regulatory filing, marking a shift in tone for the healthcare conglomerate, which earlier this year amid media reports of a civil as well as criminal investigation, said it was unaware of any new probes and denied wrongdoing. The company said it proactively reached out to the Department of Justice after reviewing the media reports about its participation in the Medicare program, and that it is committed to cooperating with federal authorities. The DOJ did not immediately respond to a Reuters request for comment. More: UnitedHealth accused of secret nursing home payments to cut hospital transfers Shares of UnitedHealth slipped 3.5% in early trading, continuing a major slide that has seen the stock shed over 40% of its value this year, amid growing investor frustration over management missteps. The Wall Street Journal has published a series of reports stating that the DOJ was investigating UnitedHealth's Medicare business, a U.S. government program that covers medical costs for individuals aged 65 and older and those with disabilities. "There's just been several instances especially this year where they've (UNH) kind of had to walk back things that they've said or the company (is) obscuring some of the details… that's become very frustrating for investors," James Harlow, senior vice president at Novare Capital Management said. UnitedHealth said it has full confidence in its practices and noted that independent audits by CMS have ranked its methods among the most accurate in the industry. More: UnitedHealth Group CEO Andrew Witty stepping down due to 'personal reasons' The company also pointed to favorable decision from a court-appointed special master in a decade-long civil challenge by the department to aspects of its Medicare Advantage business, which concluded that there was no evidence to support claims of wrongdoing. analyst Lisa Gill said in a note that UnitedHealth's "proactive" approach to work with regulators was not surprising. She said that under the False Claims Act, the burden of proof would fall squarely on the DOJ. UnitedHealth also said it has launched its own initiative to conduct third-party reviews of policies, practices, associated processes and performance metrics for risk assessment coding, managed care practices and pharmacy services. (Reporting by Sriparna Roy in Bengaluru; Editing by Pooja Desai and Shinjini Ganguli)
Business Wire
19 minutes ago
- Business Wire
European Firms Embrace Google Cloud Ecosystem
LONDON--(BUSINESS WIRE)--European enterprises are rapidly advancing cloud strategies, often using AI tools and services from the expanding Google Cloud ecosystem, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. European enterprises are adopting agentic AI technologies to extend their capacity to meet the demands of increasingly complex processes. This strategy positions them for enhanced growth opportunities and innovation. Share The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Europe finds that AI capabilities are helping enterprises use the cloud to enhance operational efficiency and strategic decision-making. For many companies, the AI-powered tools and services in Google Cloud's broad technology suite, especially agentic AI offerings, play a major role in these efforts. 'European enterprises are adopting agentic AI technologies to extend their capacity to meet the demands of increasingly complex processes,' said Dorotea Baljević, director and EMEA industrial AI lead at ISG. 'This strategy positions them for enhanced growth opportunities and innovation.' The focus on using agentic AI to optimize key software development tasks, including code generation and testing, is increasing among European enterprises, the report says. Businesses are leveraging agentic AI for efficient inventory management and personalized product recommendations, driving overall business growth and operational excellence across various industries. There is a growing emphasis on responsible AI in Europe to reduce bias and enhance data security, ISG says. Google Cloud ecosystem providers are supporting these efforts by strengthening AI practices and cybersecurity measures, enabling businesses to confidently navigate the decision-making functions of AI systems while protecting sensitive information across organizational boundaries. This focus ensures ethical AI integration and protects enterprise data against emerging security threats. European enterprises are also adopting data modernization strategies to ensure high-quality, accessible data, which is crucial for agentic AI success, the report says. By migrating legacy data to cloud platforms, businesses gain access to tools that can improve insights and decision-making. Google Cloud ecosystem providers offer expertise in integrating advanced data management, analytics and AI into unified platforms, allowing enterprises to streamline operations and enhance business intelligence. Demand for cloud sovereignty solutions is surging in Europe as enterprises seek to comply with stringent privacy regulations and maintain control over their data systems, ISG says. Enterprises are implementing isolated servers in cloud data centers to address geopolitical uncertainties. Google Cloud ecosystem providers support these efforts by delivering services that ensure independent management of cloud environments, which enhances data security. 'Enterprises are adopting AI and data strategies to enhance productivity while ensuring security and compliance,' said Mark Purdy, principal analyst, ISG Provider Lens Research, and the lead author of the report. 'These initiatives foster growth and operational resilience.' The report also explores other European cloud trends, including the growing adoption of hybrid and multicloud architectures for enhanced flexibility and security and an increasing focus on FinOps for cloud cost optimization and strategic financial management. For more insights into the cloud challenges faced by European enterprises, along with ISG's advice for addressing them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Europe evaluates the capabilities of 37 providers across four quadrants: Google Cloud Professional Services (Consulting and Migration), Google Cloud Managed Services, Google Cloud Enterprise Data Infrastructure Services and Google Cloud GenAI and AI Services. The report names Accenture, HCLTech, TCS and Wipro as Leaders in all four quadrants. Cognizant, GFT and NTT DATA are named as Leaders in three quadrants each. Atos, LTIMindtree, Quantiphi and T-Systems are named as Leaders in two quadrants each, and DXC Technology, PCG and Telana are named as Leaders in one quadrant each. In addition, Telana is named as a Rising Star — a company with a 'promising portfolio' and 'high future potential' by ISG's definition — in two quadrants. SFEIR is named as a Rising Star in one quadrant. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among Google Cloud ecosystem providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Telana. The 2025 ISG Provider Lens ® Google Cloud Partner Ecosystem report for Europe is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens ® Research The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage. About ISG ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
Wall Street Journal
an hour ago
- Wall Street Journal
U.S. Stock Futures Rise But Asia, European Markets Fall on Rate Cut Uncertainty
U.S. stock futures rose after Nasdaq closed at another new record Thursday following Google-parent Alphabet's earnings and despite continued trade tensions and weaker-than-expected housing data. European stocks fell in line with Asia on uncertainty over Fed rate cuts. —U.S. futures for the S&P 500 were up 0.1% and futures for the Dow Jones Industrial Average climbed 0.1%. The S&P 500 added less than 0.1% Thursday for its fourth consecutive record, the longest such streak since December while the tech-heavy Nasdaq gained 0.2% to hit its 12th record of July.
