Latest news with #Charleston
Yahoo
2 hours ago
- Business
- Yahoo
Rocky Mountain Chocolate Factory Inc (RMCF) Q1 2026 Earnings Call Highlights: Strategic Shifts ...
Total Revenue: $6.4 million, flat compared to the prior period. Product Sales: $4.7 million, down from $5.3 million last year. Franchise and Royalty Fees: $1.7 million, up from $1.1 million last year. Total Product and Retail Gross Profit: $0.3 million, improved from a negative $0.3 million. Costs and Expenses: $6.5 million, down from $8 million last year. Net Loss: $0.3 million or $0.04 per share, compared to a net loss of $1.7 million or $0.26 per share last year. EBITDA: $2 million, compared with a negative $1.4 million last year. Cash Balance: $0.9 million as of May 31, 2025, compared to $0.7 million at February 28, 2025. Debt Outstanding: $6 million as of May 31, 2025, flat compared to February 28, 2025. Warning! GuruFocus has detected 7 Warning Signs with RMCF. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Rocky Mountain Chocolate Factory Inc (NASDAQ:RMCF) has transitioned from a rebuilding mode to an execution mode, with a focus on precision, accountability, and clarity. The company has implemented a flat monthly fee program for freight delivery, encouraging more frequent store orders and improving product freshness. Adoption of new ERP and POS systems has enhanced decision-making and provided key insights into store performance, aiding in improved profitability. The company opened a new store in Charleston, South Carolina, featuring a refreshed brand identity and modern store layout, with positive early feedback. RMCF achieved positive EBITDA for the first time in several years, indicating that their strategic initiatives are beginning to yield financial improvements. Negative Points Total revenue for the quarter was flat compared to the prior period, with product sales declining from $5.3 million to $4.7 million. The company did not renew a large specialty market customer, resulting in a $500,000 drop in sales. Net loss for the quarter was $0.3 million, although improved from a $1.7 million loss in the previous year. RMCF has $6 million in debt outstanding, which remains unchanged from the previous quarter. The company is still in discussions with the board regarding potential capital needs for expansion, indicating uncertainty in funding future growth. Q & A Highlights Q: You mentioned a flat free freight charge. What early indicators are you watching to evaluate whether it's driving the intended shift in franchisee ordering behavior? A: We are monitoring order frequency, which had previously decreased from every two weeks to four or even six weeks. By waiving the fee, we encouraged franchisees to order more frequently, ideally every two weeks, which we can track through our ERP and POS systems. - Jeffrey Geygan, Interim CEO Q: Your ERP rollout is still undergoing refinement. As that data stabilizes, what processes or decisions do you expect to look materially different six months from now? A: The ERP data provides insights into manufacturing efficiencies, order frequency, and profitability, which will be instrumental in decision-making across departments. This will enhance our ability to make informed decisions. - Jeffrey Geygan, Interim CEO Q: With the e-commerce relaunch scheduled for summer, how does your online strategy differ from the past, and how will success be measured? A: The new site is more elegant and contemporary, with an improved user interface. We expect the refresh to enhance brand presentation and online conversions, and we will report on its success in the future. - Jeffrey Geygan, Interim CEO Q: You delivered positive EBITDA this quarter. What operational levers are most likely to drive continued EBITDA expansion? A: Our positive EBITDA is due to improved pricing, SG&A discipline, and factory efficiencies. We expect to continue benefiting from margin discipline and strong franchisee support tools, aiming to reduce costs and improve efficiencies. - Carrie Cass, CFO Q: Can you talk about your capital needs and the potential need to raise money for expansion? A: Currently, we are not planning to raise capital, but this is a discussion with the board. If needed, it would likely be for working capital. We aim to keep the balance sheet clean and avoid dilutive capital. - Jeffrey Geygan, Interim CEO Q: How are you developing your strategy to bring in new franchisees and support current ones? A: We focus on existing franchisees for expansion and have a network for new sophisticated franchisees. We employ business consultants for store visits and use POS data for analytics to improve store performance and profitability. - Jeffrey Geygan, Interim CEO Q: How much does pricing vary now that you have more data to analyze? A: Pricing varies based on location, such as high-traffic tourist areas versus urban settings. We encourage franchisees to optimize pricing without destroying demand, using system-wide data to guide them. - Jeffrey Geygan, Interim CEO Q: Franchise and royalty fees were up about $0.5 million year-over-year. Can you explain why? A: The increase is due to more same-store sales generating higher royalties and catching up on outstanding items. - Carrie Cass, CFO Q: The cost of sales was down significantly year-over-year. What contributed to this? A: The drop is attributed to cutting a customer we were losing money on and improved factory efficiencies and scrap reduction. - Carrie Cass, CFO Q: Any thoughts on the timing of permanent leadership at this point? A: This is an ongoing conversation with the board, and no decision has been made yet. - Jeffrey Geygan, Interim CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
2 hours ago
- Automotive
- Yahoo
Will Tariffs Bring Volvo's Popular SUVs to American Factories?
Will Tariffs Bring Volvo's Popular SUVs to American Factories? originally appeared on Autoblog. Your next Volvo might be made in the USA According to a new report by Automotive News, Swedish automotive powerhouse Volvo may be considering shifting production of two of its most popular models to its U.S. production facilities to mitigate the most severe effects of President Trump's tariffs on its imported models. Two people familiar with the plan told AutoNews that the Swedes plan to build two of their popular crossovers, the midsize XC60 and the full-size XC90, at their factory outside of Charleston, in Ridgeville, South Carolina. They state that production of the smaller XC60 would commence first in January 2027, with the larger XC90 to follow in October 2028. View the 2 images of this gallery on the original article According to one of the sources who spoke with AutoNews, Volvo expects to build about 60,000 XC60s and 50,000 XC90s annually in the U.S., which would take advantage of the factory's 150,000-vehicle capacity. Currently, the brand makes just two cars at the South Carolina factory: Volvo's own EX90 electric full-size SUV and the Polestar 3 for its sister EV brand. June 2025 Volvo Car USA sales numbers reveal that the two bestselling Volvo vehicles in the States are the cars that are alleged to be localized. In the first half of the year, Volvo sold 21,907 units of the mid-size XC60 and 19,748 units of the full-size XC90. In total, the two crossover SUVs made up a whopping 64% of the 64,680 cars it moved in the U.S. through June. Volvo is currently shuffling its cards The news of the alleged plans comes amid the news of some significant financial speed bumps for the Swedes. According to a July 14th report by Bloomberg, Volvo's car division is taking an impairment charge (a Wall Street and accounting term used to describe the diminishing in quality, strength, amount, or value of an asset) of 11.4 billion Swedish kronor (~$1.2 billion) due to delays to some of its electric models and the escalating cost of tariffs. Specifically, Volvo is pinning the charges on hiccups related to the electric EX90 SUV and its electric sedan counterpart, the ES90. In a statement, they note that increased development costs have cut into potential profits from the EX90. Additionally, Volvo has raised concerns that tariffs have made the ES90 unfeasible for sale in the U.S. and threaten any EU sales profits. 'Given market developments such as import tariffs in the US, development and launch delays for the EX90, and strategic investment prioritizations, we have reassessed volume assumptions for these two cars. This has resulted in a lower than planned lifecycle profitability,' Volvo Cars CFO Fredrik Hansson said in a statement. Recently, Volvo Cars CEO Hakan Samuelsson shared that the company would be taking a page from Nissan's book and starting its own austerity program, aiming to save over 18 billion kronor (about $1.85 billion). Part of this plan includes cutting 7% of the global workforce, which means around 3,000 jobs. These changes come after Volvo saw a 60% drop in operating income for the first quarter, and they're meant to help steady the company as it deals with tougher trade tariffs and slowing demand for EVs. However, since rejoining the company on April 1, Samuelsson has hinted at significant plans for the South Carolina factory, stating in a May Bloomberg interview that the company wants to "bring in something rather fast, and something selling in good numbers," adding that "something midsize core is a good guess. Additionally, the Volvo CEO has publicly expressed that he sees the situation with Trump's tariffs as an opportunity to boost and localize U.S. production. During Volvo's annual general meeting on April 3, Samuelsson told shareholders that globalization is being "dismantled," adding that they need to 'learn from the Chinese how to localize." 'To get around these high 25 percent import tariffs, we need to look at localizing more, increasing the volumes in the factory, and getting the volumes up to get the cost down,' he said. Final thoughts Volvo is not alone in its resilience against the current tariff agenda set by the administration. However, the company has faced some unfortunate decisions in the past regarding its South Carolina plant. For example, the factory opened in 2018 to produce the S60 sedan, just as the sedan market began to shift toward crossover SUVs. Last year, Volvo started assembling the EX90 SUV at this plant and later introduced the Polestar 3, but demand for electric vehicles (EVs) has since slowed down. However, Volvo CEO Samuelsson seems committed to revitalizing Volvo after a period of unstable leadership. Although he is determined to increase American production of high-volume models amidst challenging trade discussions between nearly every nation, any decisions about the company's future must be carefully calculated. Will Tariffs Bring Volvo's Popular SUVs to American Factories? first appeared on Autoblog on Jul 15, 2025 This story was originally reported by Autoblog on Jul 15, 2025, where it first appeared.
Yahoo
a day ago
- Entertainment
- Yahoo
From ‘The Big Lebowski' to ‘Smurfs,' John Goodman Reflects Candidly on His Life in Comedy
John Goodman is enjoying a rare moment of calm. The 73-year-old star recently wrapped up his roles on both ABC's The Conners and HBO's The Righteous Gemstones, and now finds himself without a new project on the horizon for the first time in years. The actor, known for his booming voice and being a go-to for filmmakers like the Coen brothers, also finds himself far away from Hollywood, living in Charleston, South Carolina, after losing his Palisades home in the wildfires in January. 'It's been 10 years since I've done a play, so I have to get back into that,' says the former theater major during an upbeat Zoom with THR in late June. More from The Hollywood Reporter John Goodman "Experienced a Hip Injury" on Alejandro González Iñárritu Tom Cruise Movie, Leading to "Brief Delay in Shooting" Watch The Hollywood Reporter's Full, Uncensored Comedy Actor Roundtable Watch 'Off Script With The Hollywood Reporter' Featuring Top Comedy Actors Tonight on IFC and AMC+ Despite an open schedule looming, there will be plenty of Goodman arriving on screens in the coming months. Earlier this year, he shot a part in Alejandro González Iñárritu's upcoming Tom Cruise movie, and he is in full promotional mode for Paramount's animated film Smurfs, which hits theaters July 18 and sees him voicing patriarch Papa Smurf alongside Rihanna's Smurfette. The actor has quite the legacy of voice work, notably bringing to life the lovably frightening Sulley in Pixar's Monsters Inc. franchise. But of course, there has been no shortage of standout live-action performances from the actor, including big-screen collaborations with Steven Spielberg and Coen brothers favorites like The Big Lebowski and O Brother, Where Art Thou?, not to mention a run in the 2010s that gave Goodman the rare distinction of appearing in back-to-back best picture winners (The Artist and Argo). In a chat with THR, Goodman looks back at his relationship with Roseanne Barr, bombing at his Saturday Night Live audition and the time Spielberg announced Goodman was going to star in Flintstones, without asking him first. In the past few months, you've said goodbye to both and . How does it feel to no longer play Dan Conner after all these years? I didn't think [the Roseanne reboot] was going to go beyond the initial five or six episodes. I thought it'd be a one-off thing, and then we got picked up, and Roseanne got fired. I thought that was it, and as soon as they dismissed the cast, I picked up Righteous Gemstones. Then we got to do the show again as The Conners. I didn't know how long it would last, but I sure enjoyed it while I was there. The Conners finale ends with Dan alone on the couch, saying good night directly to the camera. I wanted to do it, and they let me, and they kept it. I thought it was just us saying, 'Good night, folks. Thank you.' Dan visits Roseanne's grave in the episode. Have you connected with Roseanne about the end of the show? No. I'd rather doubt if she wants to talk to me. We haven't talked for about seven or eight years. Did that aspect of make it a tough show to navigate? No. We got a good cast, and everybody stands out. You and Roseanne had electric chemistry from the start of the show in the late 1980s. What do you remember from those early days? We hit it off from jump street. She made me laugh, and I made her laugh, and wow, it was so much fun. We'd get so many viewers for the show back then — 20, 30 million people. Things are so different now, but it was a special time. For Gemstones, what was the most uncomfortable situation that Danny McBride put you in as the televangelist family's patriarch, Eli? I read the final season, and there was one particular scene that I said, 'I can't do this.' It involved the soixante-neuf [French for '69'] position with my girlfriend. I said, 'I'm not going to do it.' [But]they set the sexual position up in a way that it was just funny. I was only uncomfortable for an hour or so, and I'm no good naked. Your career isn't slowing down. You recently shot Alejandro Iñárritu's new comedy with Tom Cruise that's out next year. There are a lot of funny moments in it. Tom is a force of nature, and it's fun to just hang on and see what he's going to do. He's a 63-year-old professional athlete and artist. He's got the drive and the energy, and I wish I had half of it. Did you know him prior to this project? No. We'd met before, but it was like 35 years ago at Bruce Willis' house in Malibu. I had no idea he would remember that, but he did. He's just easy to talk to and a great guy. You made headlines earlier this year with your on-set hip injury. Was it for an action scene? It was a real accident. We had been working on the scene for a week and a half. I wasn't quite getting it right, and through a process, I finally made a breakthrough. But after that, we were blocking it, and I was wearing stocking feet, like I had been for the last week and a half. I was passing Tom, and my legs just went on the floor, and I came up parallel to the ground and landed on my hip. I tried to get back up, and when I couldn't do that, I started fearing the worst. I didn't know I had fractured it until we got X-rays. So sorry to hear. How are you now? There was a brilliant doctor on set, and he got me into the Cleveland Clinic [in London]. They operated the next morning, and so far, so good. Unfortunately, I was down for about a month there where I couldn't do anything, and it was driving me nuts. They found other things to do, and I finally got back into it. Is there a role from your career that makes you the proudest? There probably is. People seem to enjoy The Big Lebowski, and since everybody else likes it so much, I'll take that. But anything I did for Joel and Ethan [Coen]. I wish I could go back and do Barton Fink because there's some things I would do different now, but I can't. And the Babe Ruth movie [1992's The Babe]. I would have worked a lot harder on that. I went to see with my baseball team at the time, and scenes still stick with me. Well, great. It was hard to do. I used to do this when I started Roseanne. I'd do the series, and then I'd get two films for the summer, and that actually continued for a while, until I was just trying to turn water instead of really digging into it. Is that a tough feeling when a film doesn't connect with the audience? Yeah, I always blame myself: 'What did I do wrong?' 'What could I have done better?' After a while, you have to let it go, and I did. It appears that has been embraced by new fans through social media. Oh, good. It might have been a little ahead of its time. It didn't feel like that when it sank, but that's one thing about film. It's there forever. If people dig it now, that's just great and means the Wachowskis knew what they were doing. What was it like as a young actor to collaborate with the Coens? It was great because I was in their second film. They had just done Blood Simple, and I didn't really know who they were. I went in to an audition for Raising Arizona, and we just goofed around for an hour. I got the role, and a lot of my other friends that went in just couldn't believe it because I really didn't have much experience. When we were shooting, I would go to the set on my day off just to goof around and watch these guys, watch how they work, feud with [cinematographer] Barry Sonnenfeld just for the hell of it. I wish I could say it was a great learning experience, but I was having too much fun. You became a fixture on SNL in the 1990s. What do you remember about your unsuccessful audition to join the cast? That was 1980 when the original cast left, Lorne [Michaels] left, and I didn't put a lot of thought into it, unfortunately. I didn't have any improv or stand-up background, and I had a terrible audition, but for some reason, I still thought I'd get cast. Nine years later, I got to host the show [for the first of 13 times]. That was always the best part of my year, going to host the show for a week. Did you have a favorite castmember? Oh, golly. I don't, but Phil Hartman stands out. Jon Lovitz. I'd have to say Phil because he was always solid gold, 100 percent. Among your notable characters was Linda Tripp. Was that tricky to navigate at a fraught time for the nation? No, I just put a dress on. I did it because it was funny and didn't really think too much of it. She's a public figure, and she did what she did. Speaking of genius filmmakers for your catalog, Steven Spielberg handpicked you as the star of 1994's , which he produced. It wasn't something I wanted at the time. He cast me in a couple of movies, and then when we were sitting down to read [1989's] Always for the first time, he made the announcement, which surprised me. Nobody asked me, but it worked out. It was perfect at the time, and I love Rick Moranis [who played Barney Rubble]. He's just a lovely man and so funny and smart. You have quite a legacy of animated roles already, including Sulley from . How do you approach such a familiar part as Papa Smurf?Everything I planned for went out the window just as soon as I stepped up to the mic, so it was just as well. I just let them guide me and tell me what they wanted. For me, doing animation can be tough because I find if I put my whole body into it, it sounds more believable. So I'm pretty much rung out by the time a four-hour session ends. Right now, all that kids know me from is, 'That's Sulley!' It's great. I started doing animation for Steven Spielberg [with 1993's We're Back! A Dinosaur's Story]. Steven would sit right in the booth with me, and we'd go through the script. I'd go, 'God, is this what it's like?' (Laughs.) I got lucky the first time. s Walter comes up among your fans as a role that many wish could have earned you your first Oscar nomination. Are awards ever on your mind? If they come along, that's great. Early on, I would get nominated every year for Roseanne and lose every year, so I got the idea that maybe they ain't for me. [He later won an Emmy for guesting on Studio 60 on the Sunset Strip.] It's hard to believe. No, it's a job, and we all can't be best plumber every year. We just plug along and feed the machine, and we're lucky we get to do something that we love for a living. You had a memorable arc on . Is it strange to think back on a time when depictions of American politics were more idealized, given our chaotic current moment? This is like taking a Conestoga wagon from the prairie to the desert. I don't know what's going to happen. It's frightening that things are turning out the way they are, but it's cyclical, and the wheel will turn. I don't have any politicians that look like me, so I think I'm safe. I played a senator on Alpha House [which launched its two-season Amazon run in 2013], and Garry Trudeau wrote it. Things were starting to happen then [in real life] that were going into a cultish phase, win at any cost. My guy just wanted to help people and was a decent man, and I enjoyed doing that. Did it take you a while to get used to the concept of celebrity? I hated it from day one because it just made me uncomfortable. I don't consider myself a celebrity. It's an overused word that means nothing now. In the beginning, I was insecure enough that I couldn't handle things, and it made me defensive. In the '90s, tabloids were very active in setting people up to sell stories, and it made me paranoid. I found a guy with a video camera sleeping outside my house in Encino one day. It was awful because Roseanne was a magnet for that stuff, and I got a lot of the residual stuff. Roseanne has been credited with speaking to an everyday viewer that Hollywood might sometimes overlook. It was basically playing myself and people I know. Roseanne said it perfectly: 'Just because we're poor doesn't make us stupid.' And that went a long way with me for the show. Do you see Hollywood as having impacted our political divide? I think the damage has been done by the news cycle. There's always been a stigma about being an actor, and they'll label anything as Hollywood. It was purposefully exploited because people will hate anything that's different. 'These people are freaks. They're rich. They don't care about you.' There are a lot of loons in the business, but that's not the standard, I found. People work their asses off. Do you plan to live in California again? Unfortunately, I lost my house in January. My wife has taken care of a lot of that because she's a lot better at it than I am. But eventually, I need to get back there. I don't know what's going to happen with filming in Southern California, but people are crazy not to. It's got everything. Have you always been motivated by getting a laugh? I was the funny kid. I did a lot of it for attention, but I loved the response. I loved getting laughs, to the extent where that might have been all I thought about in elementary and high school, was goofing. Things were happening fast and furious, and I just had a different slant on things. Over the years, you've been open about getting sober, and it seems now that you've never been in better shape. What goes through your mind when you think back on health challenges? Mostly regrets [while drinking], but there's nothing I can do about that. It happened, and I just try to apologize to the people I've hurt, rectify the things I did wrong. It was such a long period that I was out there, and just try not to repeat it. It's actually made me a better person. You can't blame yourself, really, because it is a disease. Is there a favorite note you've gotten from a director over the years? Probably, but I can't remember it right now. My favorite review was from The Village Voice. I won't name the film, but when it came out [during the Roseanne era], the critic said, 'With this film, John Goodman wears out his welcome.' I thought that was the best review I've heard. Little did they know that there was no getting rid of you. Yep. My welcome may be gone, but I'm still here. The guest that wouldn't leave. This story appeared in the July 9 issue of The Hollywood Reporter magazine. Click here to subscribe. Best of The Hollywood Reporter 'The Studio': 30 Famous Faces Who Play (a Version of) Themselves in the Hollywood-Based Series 22 of the Most Shocking Character Deaths in Television History A 'Star Wars' Timeline: All the Movies and TV Shows in the Franchise
Car and Driver
a day ago
- Automotive
- Car and Driver
Volvo Planning to Shift Some XC60, XC90 Production to U.S.
Volvo is planning to begin U.S. production of the XC60 and XC90 crossovers as a response to the Trump administration's auto tariffs, according to an Automotive News report. The outlet cites two anonymous sources who say Volvo will begin U.S. production of the XC60 in January 2027, with XC90 production following in October 2028. A Volvo spokesperson declined to comment on future production plans to Car and Driver, while reaffirming the brand's commitment to building where it sells. While the true brunt of the Trump administration's automotive tariffs hasn't been felt yet, automakers are still scrambling to find new ways to bring down costs. According to a new report from Automotive News, Volvo is planning to bring production of two of its most popular models stateside to evade the majority of the tariffs. View Exterior Photos Volvo The AN report cites two anonymous sources familiar with the plan who say Volvo will move production of the XC60 and XC90 crossovers to the United States. Production of the XC60 will start first, and will begin in January 2027 at the brand's facility near Charleston, South Carolina, the story says. Production of the XC90 would follow in October 2028. The moves line up with previous messaging from the automaker that it is considering adding production of another model to the South Carolina plant, which has been operating considerably under its maximum capacity. View Interior Photos Marc Urbano | Car and Driver In a statement to Car and Driver, a Volvo spokesperson declined to comment on future products or production plans but did reassert Volvo's commitment to building cars where it sells them. "Volvo Cars is committed to its long-held strategy of building where we sell—a principle that is more important now than ever," Volvo's spokesperson said. "As part of this strategy, Volvo Cars has previously communicated that it's considering adding production of another model at our U.S. plant, which has a capacity of 150,000 vehicles per year. We look forward to sharing more soon." Jack Fitzgerald Associate News Editor Jack Fitzgerald's love for cars stems from his as yet unshakable addiction to Formula 1. After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn't afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf. Read full bio
Auto Blog
a day ago
- Automotive
- Auto Blog
Will Tariffs Bring Volvo's Popular SUVs to American Factories?
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. View post: Walmart is selling a 'lightweight' $75 mini chainsaw for just $33, and shoppers say it's a 'little powerhouse' Your next Volvo might be made in the USA According to a new report by Automotive News, Swedish automotive powerhouse Volvo may be considering shifting production of two of its most popular models to its U.S. production facilities to mitigate the most severe effects of President Trump's tariffs on its imported models. Two people familiar with the plan told AutoNews that the Swedes plan to build two of their popular crossovers, the midsize XC60 and the full-size XC90, at their factory outside of Charleston, in Ridgeville, South Carolina. They state that production of the smaller XC60 would commence first in January 2027, with the larger XC90 to follow in October 2028. Honda may move the next-generation Civic production from Mexico to the U.S. Watch More According to one of the sources who spoke with AutoNews, Volvo expects to build about 60,000 XC60s and 50,000 XC90s annually in the U.S., which would take advantage of the factory's 150,000-vehicle capacity. Currently, the brand makes just two cars at the South Carolina factory: Volvo's own EX90 electric full-size SUV and the Polestar 3 for its sister EV brand. June 2025 Volvo Car USA sales numbers reveal that the two bestselling Volvo vehicles in the States are the cars that are alleged to be localized. In the first half of the year, Volvo sold 21,907 units of the mid-size XC60 and 19,748 units of the full-size XC90. In total, the two crossover SUVs made up a whopping 64% of the 64,680 cars it moved in the U.S. through June. Volvo is currently shuffling its cards Source: Volvo The news of the alleged plans comes amid the news of some significant financial speed bumps for the Swedes. According to a July 14th report by Bloomberg, Volvo's car division is taking an impairment charge (a Wall Street and accounting term used to describe the diminishing in quality, strength, amount, or value of an asset) of 11.4 billion Swedish kronor (~$1.2 billion) due to delays to some of its electric models and the escalating cost of tariffs. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Specifically, Volvo is pinning the charges on hiccups related to the electric EX90 SUV and its electric sedan counterpart, the ES90. In a statement, they note that increased development costs have cut into potential profits from the EX90. Additionally, Volvo has raised concerns that tariffs have made the ES90 unfeasible for sale in the U.S. and threaten any EU sales profits. 'Given market developments such as import tariffs in the US, development and launch delays for the EX90, and strategic investment prioritizations, we have reassessed volume assumptions for these two cars. This has resulted in a lower than planned lifecycle profitability,' Volvo Cars CFO Fredrik Hansson said in a statement. Source: Volvo Recently, Volvo Cars CEO Hakan Samuelsson shared that the company would be taking a page from Nissan's book and starting its own austerity program, aiming to save over 18 billion kronor (about $1.85 billion). Part of this plan includes cutting 7% of the global workforce, which means around 3,000 jobs. These changes come after Volvo saw a 60% drop in operating income for the first quarter, and they're meant to help steady the company as it deals with tougher trade tariffs and slowing demand for EVs. However, since rejoining the company on April 1, Samuelsson has hinted at significant plans for the South Carolina factory, stating in a May Bloomberg interview that the company wants to 'bring in something rather fast, and something selling in good numbers,' adding that 'something midsize core is a good guess. Source: Volvo Additionally, the Volvo CEO has publicly expressed that he sees the situation with Trump's tariffs as an opportunity to boost and localize U.S. production. During Volvo's annual general meeting on April 3, Samuelsson told shareholders that globalization is being 'dismantled,' adding that they need to 'learn from the Chinese how to localize.' 'To get around these high 25 percent import tariffs, we need to look at localizing more, increasing the volumes in the factory, and getting the volumes up to get the cost down,' he said. Final thoughts Volvo is not alone in its resilience against the current tariff agenda set by the administration. However, the company has faced some unfortunate decisions in the past regarding its South Carolina plant. For example, the factory opened in 2018 to produce the S60 sedan, just as the sedan market began to shift toward crossover SUVs. Last year, Volvo started assembling the EX90 SUV at this plant and later introduced the Polestar 3, but demand for electric vehicles (EVs) has since slowed down. However, Volvo CEO Samuelsson seems committed to revitalizing Volvo after a period of unstable leadership. Although he is determined to increase American production of high-volume models amidst challenging trade discussions between nearly every nation, any decisions about the company's future must be carefully calculated. About the Author James Ochoa View Profile
