Latest news with #VolvoCars
Yahoo
5 days ago
- Automotive
- Yahoo
Volvo Cars says turnaround plan on track despite Q2 losses
Geely-owned Volvo Cars has reported a significant loss for the second quarter (Q2) of 2025, with a group operating profit (EBIT) down by Skr10.0bn ($1.02bn) compared to Skr8.0bn in Q2 2024, reflecting ongoing challenges within the automotive industry. Despite this, the company said that its Skr18bn ($1.84bn) cost and cash turnaround plan is progressing as expected, with full effects anticipated in 2026. Q2 revenues fell to Skr93.5bn from Skr101.5bn reported in the same period of the previous year, and the EBIT margin dropped from 7.9% to -10.6%. The Q2 EBIT includes items affecting comparability of Skr12.9bn, comprising an impairment of Skr11.4bn and a Skr1.4bn restructuring charge. Excluding these items, the EBIT was Skr2.9bn, with an EBIT margin of 3.1%. The impairment charge was attributed to the adjustment of 'financial assumptions for the EX90 and ES90 platform', import tariffs, and delays for the EX90. Additionally, a one-time restructuring cost of Skr1.4bn was linked to a decrease of 3,000 headcounts. Retail sales also experienced a decline, with 181,600 cars sold in Q2, a 12% decrease from the same period last year. The Skr18bn turnaround plan, introduced in early 2025, is already having an impact, with the reduction of 3,000 positions underway, and nearly 1,100 employees having left the company. Volvo Cars said that it is taking steps to minimise material expenses, including leveraging synergies within the Geely group and partnering on procurement. The company is also reducing working capital and investment pace, easing off investment volume, as major investments are being made in new product architecture. This will bring cost decreases and performance improvements, starting with the new Volvo EX60. Electrification remains a key focus of the company, with analysts predicting that 'demand for fully electric cars' will continue to grow, potentially outpacing traditional combustion engine cars by 2030. Volvo Cars noted that it will 'refresh' its plug-in hybrid (PHEV) offerings, starting with the all-new XC70 extended-range PHEV, set to launch in China in Q3. New governance models are being implemented by the company in China and the Americas, and the local assembly of the XC60 SUV in the US will help reduce the effects of import tariffs. Despite a challenging 2025, Volvo Cars is focusing on driving sales, including the EX30 and the 90 Series electric vehicles. The EX60 is also on track to strengthen the company's electric lineup. Volvo Cars CEO and president Håkan Samuelsson said: 'Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition. 'However, our turnaround actions are starting to show results. In a Q2 market with headwinds we made a clear improvement of free cash flow versus Q1 and our EBIT margin excluding items affecting comparability was slightly higher.' "Volvo Cars says turnaround plan on track despite Q2 losses" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
6 days ago
- Automotive
- Yahoo
Volvo Cars CEO: dual tech for China and the West is new trade reality
Volvo Cars will develop different technologies for products offered to Chinese and Western customers as trade becomes more fragmented, said CEO Håkan Samuelsson on Monday. '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. Related European shares show slight rise despite Iran-Israel crisis, while oil stays high A focus on China and the US 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. Related How is the European auto industry responding to Trump's tariffs? Volvo Cars announces that it will be slashing 3,000 jobs to cut costs Samuelsson pointed to the new XC70, an extended-range plug-in hybrid recently announced for Chinese customers, 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. Tech restrictions in Europe 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.' Related Airbus pledges higher dividends as it confirms financial guidance 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Automotive
- Yahoo
Nvidia to sell H20 chips to China again after US gives export approval
US tech giant Nvidia will start selling its H20 AI chip in China again after the Trump administration relaxed export restrictions. The White House gave assurances that it would grant licenses for the product in the Chinese market, the firm said on Tuesday in a blog post. The move is a U-turn for the government, which in April banned sales of the chip to China, linked to concerns that the technology could be used for military purposes. At the time, Nvidia said it had been told that the export control would stay in place for the 'indefinite future". Nvidia claimed in May that it had taken a $4.5 billion (€3.8bn) inventory cost hit in the April quarter because of the restrictions and added that it had missed out on an additional $2.5bn (€2.1bn) in sales. The announcement temporarily sent its share price plunging. The H20 chip was specifically designed for the Chinese market, in line with restrictions introduced by former president Joe Biden in 2023. When in office, Trump overhauled the Biden-era curbs but imposed restrictions on Nvidia's H20 AI chip. On Tuesday, Nvidia also announced a new China-specific AI chip it said was 'fully compliant' with export rules. Tuesday's announcement comes after Nvidia CEO Jensen Huang has spent months lobbying in both the US and China. Related Chipmaker Nvidia hits $4 trillion making it world's most valuable company Volvo Cars CEO: dual tech for China and the West is new trade reality Huang argued that Trump's restrictions were a 'failure' in the sense that they were boosting China's AI capabilities, notably as the market could no longer rely on American products. Exports of the chip do, however, help Chinese AI companies like DeepSeek, that use Nvidia chips to create their products. The breakthrough comes as relations between Washington and Beijing have thawed in recent weeks. Earlier this year, the Trump administration threatened a 145% duty on Chinese goods sent to the US, and Beijing responded with a 125% retaliatory tariff. The two sides decided to lower these taxes in May, and then agreed on a trade framework last month. The trade agreement seeks to ease restrictions on exports of raw materials and other critical technologies. Throughout earlier talks, Donald Trump had nonetheless suggested that curbs on the H20 AI chip wouldn't be relaxed as part of the framework. Both China and the US are seeking to find a permanent solution to replace the temporary trade truce before a 12 August deadline. Nvidia's Huang is currently in Beijing to hold talks with government officials, after meeting with President Trump last week. The CEO also announced plans to create a new graphics processing unit, the RTX PRO, for the Chinese market, which he said is fully compliant with US export controls.
Yahoo
7 days ago
- Automotive
- Yahoo
Volvo Cars' XC60 to join US production lineup
Geely's Volvo Cars is set to bolster its US manufacturing operations by adding the XC60 mid-size SUV to its production line in the Ridgeville car plant, South Carolina, US. The facility, which currently assembles the fully electric EX90, is expected to commence XC60 production in late 2026. After the Trump administration introduced additional tariffs on automotive imports earlier this year, several OEMs are reassessing their manufacturing strategies and considering making more US-market bound vehicles at available US plants rather than importing them. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service In the first half of 2025, the XC60 saw a nearly 23% increase in US sales, underscoring its significance in the market. The model accounts for over one-third of Volvo Cars' US sales in the country this year, with a quarter of these being plug-in hybrids. Volvo Cars Americas president Luis Rezende said: 'The XC60 is already beloved around the world and in the US and we're proud we'll soon be able to offer American families the XC60 they love, assembled here by American autoworkers. 'The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our US customers.' Volvo Cars' Ridgeville plant was established nearly a decade ago. With a $1.3bn investment over the past ten years, the plant has undergone extensive upgrades, including a renewed and expanded body and paint shop, as well as a new battery pack production line. The addition of the XC60 is expected to secure local employment. Volvo Cars CEO Håkan Samuelsson said: 'Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive US market, while supporting and creating American manufacturing jobs. 'It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the US market, where we are celebrating our 70th anniversary and have sold over 5 million cars.' Volvo Cars noted that the Ridgeville facility will continue to produce the fully electric, seven-seater EX90 SUV, catering to those desiring more space or a complete shift to electric vehicles. Recently, Volvo Cars announced a one-off non-cash impairment charge of Skr11.4bn ($1.19bn) for the second quarter (Q2) of 2025, attributed to financial adjustments for its EX90 and ES90 platforms. "Volvo Cars' XC60 to join US production lineup" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
7 days ago
- Automotive
- TimesLIVE
Volvo boss Samuelsson wants EU to cut ‘unnecessary' car tariffs to defuse Trump threat
The CEO of Volvo Cars urged the EU to cut its 10% tariff on American-made cars, arguing European carmakers do not need protection from US competitors in an interview with Reuters on Thursday. Brussels, along with representatives from the car industry, has spent months trying to persuade Washington to lower its 27.5% tariff on imports of European cars. "If Europe is for free trade, we should be the ones showing the way and going down to very low tariffs first," Hakan Samuelsson said after the company reported second quarter earnings. US President Donald Trump has threatened to raise tariffs on EU car imports to 30% from August 1, increasing pressure on the bloc to strike a deal. Before Trump's tenure, the US had a 2.5% tariff on European-made cars, while the EU had a 10% duty on vehicles imported from the US, which Samuelsson previously said was unfair. "I think it's absolutely unnecessary. The European car industry definitely does not need to have any protection from American car builders," he told Reuters. Volvo Cars, majority-owned by China's Geely Holding ], is one of the most exposed European carmakers to US tariffs as most of its cars sold there are imported from Europe. Volvo announced on Wednesday that it would start US production in late 2026 of its best-selling model, the hybrid XC60, as a way to mitigate the tariffs. Its South Carolina plant only produces the Polestar 3 and electric vehicle model EX90, which has struggled to gain traction with US consumers. Volvo has also started slimming down its product offering in the US, Reuters reported on Wednesday.
