Volvo automobiles seen outdoors a Volvo dealership in Edmonton, AB, Canada, on February 02, 2025.
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Shares of Sweden-based automaker Volvo Automobiles rose as a lot as 10% on Thursday as the corporate’s second-quarter working revenue beat analyst expectations regardless of a pointy year-on-year decline.
Volvo Automobiles, which is owned by China’s Geely Holding, on Thursday reported that second-quarter working revenue excluding gadgets affecting comparability fell to 2.9 billion Swedish kronor ($297.83 million), down from 8 billion throughout the identical time final 12 months.
Second-quarter income dropped to 93.5 billion kronor, in comparison with 101.5 billion kronor over the identical interval in 2024.
Volvo Automobiles, which is broadly thought-about as one of the uncovered European carmakers to U.S. tariffs, mentioned the outcome displays an ongoing difficult surroundings for the automotive trade. The corporate mentioned it was additionally impacted by a beforehand introduced one-off non-cash impairment cost of 11.4 billion kronor.
Regardless of the downbeat sentiment, Volvo Automobiles’ second-quarter figures had been nonetheless higher than anticipated, analysts at JPMorgan mentioned in a analysis word.
Shares of Volvo Automobiles had been final seen buying and selling up 8.2%. The inventory worth stays down round 20% year-to-date.
The second-quarter earnings come shortly after Volvo Automobiles launched plans so as to add its best-selling XC60 sports activities utility automobile to the manufacturing line of its U.S. automobile plant in Ridgeville outdoors Charleston in South Carolina.
Manufacturing of the XC60, which has been the agency’s best-selling mannequin globally for years, is scheduled to start out on the manufacturing facility in late 2026.
On the similar time, Volvo Automobiles has began pulling sedans and station wagons from its U.S. portfolio amid waning curiosity, Reuters reported Thursday. It comes as U.S. tariffs of 27.5% on European-made vehicles and 100% on EVs imported from China have pressured automakers to assessment their product methods.
Volvo Automobiles CEO Håkan Samuelsson mentioned the corporate would “positively not” pull out of the U.S. market, the place it has been current for 70 years.
“What we’re doing is initially, we need to fill our manufacturing facility we now have in South Carolina. It must be the strategic asset it was supposed to be. So, we now have to put it to use extra,” Samuelsson advised CNBC’s “Europe Early Version” on Thursday.
“Second, in fact, now with the tariffs, it is extremely pure to usher in a [car model with] big-selling quantity. We’re bringing within the XC60 SUV,” he added.
