Volvo books $1bn impairment charge due to tariffs, launch delays
The group, controlled by China's Geely Holding, said it is unable to profitably sell its Volvo ES90, which is built in China, in the US due to import tariffs, while profit margins for the same model are under pressure in Europe for the same reason.
"The charge primarily reflects adjustments in expected volumes and planned lifecycle profitability associated with the platform for the EX90 and ES90 cars," it said.
The impairment charge also reflects significant launch delays in the past and subsequent additional development costs, it said.
Out of the total amount, 4.0bn crowns (R7,433,900,000) is estimated to impact cost of sales and most of the remaining amount affects the R&D line in the financial reporting.
Volvo Cars, due to publish second-quarter results on July 17, said the effect on net income in the period will be 9.0bn crowns (R16,712,982,000).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
3 hours ago
- IOL News
KZN Legislature's new initiatives for informal traders
The KZN Economic Development and Economic Development, Tourism and Environmental Affairs (EDTEA) awarded R900,000 to Impendle for the construction of 18 galvanised steel vendor stalls. Image: Supplied Informal trading infrastructure projects were the point of focus at the KwaZulu-Natal Legislature on Tuesday. The Economic Development and Planning Portfolio Committee met with the Impendle and Msunduzi municipalities for project updates. The KZN Economic Development and Economic Development, Tourism and Environmental Affairs (EDTEA) awarded R900,000 to Impendle Municipality for the construction of 18 galvanised steel vendor stalls. The project provided alternatives to containerised structures and provided dignified trade spaces. The municipality stated that the project improved the image of the CBD and brought some confidence in the recognition of informal trade. In its report, the Impendle Municipal Infrastructure for Informal Enterprises (MIE) had spent R877,000 to supply, deliver, and erect market stalls. The project closeout phase is expected to be completed on August 30, 2025. Satishrai Bhanprakash, IFP MPL, raised concerns about the long-term maintenance plans for the structures, which he feared would be open to theft. The municipality stated that it did have a maintenance plan and that the metal structures were galvanised and durable. The committee also called for better oversight and proper details on invoicing. Also discussed was the construction of 15 brick and mortar structures for the Inzinga\ KwaNxamalala Trading Units project, which received R2.1 million from EDTEA in the 2022/23 financial year. According to Impendle Municipality, the Inzinga settlement is mapped as a secondary node on Impendle's spatial development framework. The node already has schools, a sports field, a primary clinic, and a tribal court. The area is missing commercial service. "This application aims to close this gap. The implementation of this project will help in the strategic objective to bolster area area-based management plan. The idea is to provide options so that they don't have to travel to the Impendle CBD for minor day-to-day needs," the report stated. The implementation was delayed due to limited funding in 2024\2025 with a funding agreement concluded in December 2024. Work is expected to start in August 2025 subject to the finailisaton of a lease agreement with the Ingonyama trust. Shontel De Boer, a DA MPL, said she was not happy with the reports when the committee conducted an oversight in Impendle. 'The report lacked details. We asked alot of questions at the meeting and we were promised a detailed report to make a decision. This report is also too vague,' she said. Mafika Mndebele, the chairperson of the committee in the legislature, urged the municipalities to do all they can to ensure that the projects are implemented. Phindile Zondi, the Msunduzi Municipality manager of Economic Planning and Infrastructure, spoke of the redevelopment of the Ematsheni Development Services situated on Retief Street in the Pietermaritzburg CBD. They received R3 million from EDTEA while the municipality invested R1 million. Zondi said the site was previously developed as a beer hall, which further supports the proposal, which is to enhance informal traders and Small, Medium and Micro Enterprises (SMMEs). 'In 2017, the site was demolished and mobilised for funding. Vagrants moved onto the property and undertook illegal activities. With the funding, we changed the narrative. It is expected that a contractor will be appointed during August 2025 to commence with the implementation of Phase 1 of the project,' Zondi said. The site establishment is expected to commence in September 2025 for nine months. [email protected] The redevelopment of the Ematsheni Development Services situated on Retief Street in the Pietermaritzburg CBD. The project is estimated at R4 million. Image: Msunduzi Municipality
The Herald
3 hours ago
- The Herald
Volvo adds extended maintenance plan to XC60 range in SA
Volvo Car South Africa (VCSA) has introduced a limited-time maintenance plan for its XC60, aimed at offering long-term peace of mind and reducing ownership costs. For a limited period, new XC60 models, including the mild-hybrid B5 and Recharge T8 plug-in hybrid, will be covered by a seven-year/140,000km maintenance plan (whichever comes first). This extends the three-year/60,000km plan and applies across all trim levels. The offer is valid until the end of September 2025, while stocks last. 'Extending the maintenance plan of the XC60 reflects VCSA's focus on long-term vehicle care and customer value,' said VCSA MD Grant Locke. 'It forms part of our broader commitment to delivering an ownership experience that matches the quality of our vehicles and the needs of today's drivers.' The maintenance plan covers scheduled services, including labour, parts and software updates, in line with Volvo's recommended service schedule, giving owners greater confidence and predictability in running costs.
IOL News
6 hours ago
- IOL News
SASSA under fire over grant review process amid complaints from beneficiaries
Civil society group Black Sash has condemned SASSA for "failing" thousands of social grant recipients Image: File Civil society group Black Sash has condemned SASSA for failing thousands of social grant recipients, saying many have had their payments delayed without a clear explanation or proper notice. The watchdog has also called for a pause in the ongoing review process, citing widespread confusion and distress among beneficiaries. "Despite the CEO's claim that no grants have been suspended, we are witnessing a surge in complaints from beneficiaries who have been cut off without a clear explanation or notification. "Our Community Monitoring teams, based across the country and our national Helpline have been overwhelmed with distress calls from elderly persons, people with disabilities and caregivers, many of whom only discovered their grants had been 'flagged' when their money failed to appear" The advocacy group also argued that the situation was further exacerbated by the impact of bank verification checks on Older Persons' grants, which also impacted grant payment delays and added to the fear, confusion, and queues at SASSA local offices. Black Sash's message was in response to SASSA' CEO, Themba Matlou, who, during a press briefing on Monday, defended the agency's review process as necessary for verifying eligibility and combating fraud. "SASSA would like to categorically state that no social grant payments have been suspended or halted. All approved grants remain valid, andpayments continue to be processed. Any beneficiary with an active andvalid grant remains entitled to receive their payment," Matlou said. "This year, we have only introduced and implemented a 4th payment date to our payment schedule, where beneficiaries targeted for a review are paid on the 4th day". Matlou added that this "would ensure that they receive their payment after the necessary review, without prejudicing the general payment cycle for others,". In an interview on 702 on Monday, SASSA's Executive Manager for Grants Administration, Brenton van Vrede, provided further clarity on what constitutes 'additional income' and how beneficiaries are selected for review. He explained that only formal incomes, such as salaries, rental income, or court-ordered maintenance, count towards the means test. 'Maintenance is considered as income, but most people don't formalise that arrangement. So, it wouldn't be considered additional income unless there's a maintenance agreement.' Regarding income thresholds, Van Vrede specified: 'The means test threshold for the child support grant is R5,600, and the old age grant is almost R9,000, R8,990.' He added that rental income or any other income pushing beneficiaries over these limits could result in ineligibility for grants. 'If that rental income takes them over the threshold, then they won't qualify for the grant.' IOL News [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel
