Latest news with #European-made
TimesLIVE
2 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.
USA Today
2 days ago
- Automotive
- USA Today
Volvo pushes EU for lower US auto tariffs as Trump threatens hike
The chief executive of Volvo Cars urged the European Union to cut its 10% tariff on American-made cars, arguing that European automakers do not need protection from U.S. competitors, in an interview with Reuters on Thursday. Brussels, along with representatives from the auto 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. U.S. President Donald Trump has threatened to raise tariffs on European Union auto imports to 30% from August 1, increasing pressure on the bloc to strike a deal. Before Trump's tenure, the U.S. had a 2.5% tariff on European-made cars, while the EU had a 10% duty on vehicles imported from the U.S, 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 auto builders," he told Reuters. Volvo Cars, majority-owned by China's Geely Holding is one of the most exposed European automakers to U.S. tariffs as the bulk of its cars sold there are imported from Europe. Volvo announced late Wednesday that it would start U.S. production in late 2026 of its best-selling model, the hybrid XC60 as a way to mitigate the tariffs. Currently, its South Carolina plant only produces the Polestar 3 and electric vehicle model EX90 which has struggled to gain traction with U.S. consumers. Volvo has also started slimming down its product offering in the U.S., Reuters reported on Wednesday. "These are the measures we have control over, rather than when it comes to tariffs we can only have an opinion like everybody else," Samuelsson said. Reporting by Marie Mannes; Editing by Stine Jacobsen and Rachna Uppal
Time of India
2 days ago
- Automotive
- Time of India
Volvo CEO wants EU to cut 'unnecessary' auto tariffs to defuse Trump threat
The chief executive of Volvo Cars urged the European Union to cut its 10% tariff on American-made cars , arguing that European automakers do not need protection from U.S. competitors, in an interview with Reuters on Thursday. Brussels, along with representatives from the auto 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. U.S. President Donald Trump has threatened to raise tariffs on European Union auto imports to 30% from August 1, increasing pressure on the bloc to strike a deal. Before Trump's tenure, the U.S. had a 2.5% tariff on European-made cars, while the EU had a 10% duty on vehicles imported from the U.S, 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 auto builders," he told Reuters. Volvo Cars, majority-owned by China's Geely Holding , is one of the most exposed European automakers to U.S. tariffs as the bulk of its cars sold there are imported from Europe. Volvo announced late Wednesday that it would start U.S. production in late 2026 of its best-selling model, the hybrid XC60 as a way to mitigate the tariffs. Currently, its South Carolina plant only produces the Polestar 3 and electric vehicle model EX90 which has struggled to gain traction with U.S. consumers. Volvo has also started slimming down its product offering in the U.S., Reuters reported on Wednesday. "These are the measures we have control over, rather than when it comes to tariffs we can only have an opinion like everybody else," Samuelsson said.
Time of India
2 days ago
- Automotive
- Time of India
Volvo Cars quarterly operating profit beats expectations despite tariff hit
Volvo Cars reported a sharp decline in second-quarter operating profit on Thursday that nonetheless exceeded analyst expectations, sending shares up, though the company continues to face headwinds from tariffs and softening demand. Sweden-based Volvo Cars is the first European carmaker to release results in what analysts expect to be a challenging earnings season, as subdued demand for electric vehicles and intensifying competition from Chinese manufacturers coincide with trade tensions. But much of the fall had already been priced in to analyst and investor estimates as the prospect of tariffs and lower sales was largely expected. Shares were up nearly 8% at 0712 GMT. "Demand remains soft and volatile, impacted by weakening consumer confidence and the introduction of additional tariffs, which continue to pose challenges for the automotive sector," the carmaker said in its earnings report. In addition to a 27.5% tariff imposed on European-made Volvo cars entering the U.S., it has also been hit by a 25% tariff on auto parts as well as on steel and aluminium. Despite the gloomy environment, second-quarter numbers came in better than feared, analysts at Bernstein said in a research note. "Given how weak stock positioning is here it should be enough for a positive market reaction," they said. The company, owned by China's Geely Holding , posted an adjusted operating profit of 2.9 billion Swedish crowns ($297.89 million), down from 8.0 billion crowns a year earlier. Its gross margin, a key metric for assessing the tariff impact , dropped to 13.5% from 18.2% in the first quarter, though, adjusted for one-offs, it stood at 17.7%. Volvo Cars announced a $1.2 billion impairment charge related to model launch delays and tariffs on Monday, resulting in an operating loss of 10 billion crowns, compared to a profit of 8 billion crowns in the same quarter last year. Earlier in the year, former CEO Hakan Samuelsson was brought back for two years to help revive a record-low share price. Samuelsson quickly launched a cost-cutting programme, pulled earnings guidance, slashed 3,000 jobs, and slowed down investments.
Time of India
2 days ago
- Automotive
- Time of India
Volvo Cars pauses sales of some cars in US as tariffs pinch profits
Volvo Cars said it has scaled back its U.S. model lineup this year, among the first examples of a major automaker halting U.S. shipments as President Donald Trump's tariffs make it harder to sell a broad range of vehicles profitably. The Swedish carmaker, which is owned by China's Geely Holding , told Reuters this week that it has been pulling sedans and station wagons from its U.S. portfolio as interest has waned. Volvo, which releases quarterly results on Thursday, is one of themost exposed automakers to rising tariffs as the majority of its vehicles are produced in Europe or China. Import duties on vehicles made outside of the United States that were imposed on April 1 have made market conditions more challenging for foreign sellers to the U.S. market. U.S. tariffs of 27.5% on European-made cars and over 100% on Chinese imports have forced automakers to rethink their product strategies, with Aston Martin limiting U.S. exports and Nissan suspending U.S. production of Canadian-bound cars. Industry experts have warned that automakers that cannot absorb the cost of border taxes themselves or pass it on to consumers will simply stop selling those models in the U.S. market. Other industries, such as apparel and toys, are experiencing similar effects. "If you're going to reduce sales to the U.S., then you'd want to eke more value out of the sales that you do," said Andy Leyland, co-founder of supply chain specialists SC Insight. Volvo Cars will now only sell around half of its 13-model global lineup in the U.S. market. Other than its V60 station wagon, it will exclusively sell SUVs in the country. That means that sedans will no longer be sold in the U.S. Production of the S60 at Volvo's South Carolina plant stopped last year, sales of the China-made S90 have been halted and Volvo said on Monday the new ES90 sedan cannot be sold profitably in the country. Globally, it is also dropping one of its last remaining station wagons, the V90, as demand declines. Volvo Cars told Reuters its European-made electric EX40 had also been temporarily halted, but it would resume sales "shortly". The company did not provide a reason. Even Volvo's ambitions for its flagship budget SUV, the EX30 - meant to be a big U.S. seller - have been curtailed. Volvo only offers the pricier dual-motor version at $46,195 to U.S. buyers rather than the cheaper single-motor version, with a promised sticker price of $35,000, similar to Tesla's Model 3. When faced with tariffs, carmakers tend to focus on selling high-margin models, but Andy Palmer, former CEO of Aston Martin, said such a strategy could have mixed results. "Some (customers) will either go to a different company" or be forced to buy a model "they didn't necessarily want or need," Palmer said. Bill Wallace, owner of Wallace Automotive Group that sells Volvos in Florida confirmed shoppers are quick to pick other brands. "At the end of the day, even with a luxury model, they are going to compare their payment with a BMW, Lexus or a similar model ... and if it's a little bit higher ... you're just gonna lose the business," he said. Since 2022, Volvo has been hit by software bugs, supply chain snags, and tariff-related delays that slowed the rollout of its flagship electric EX30 and EX90. By the time deliveries began in 2024, EV demand had cooled, prices had spiked and new tariffs had kicked in. "Customers love them(Volvo), but they are just at the wrong place at the wrong time right now, Wallace said. Although it is produced at Volvo's U.S. factory in South Carolina, the high-end EX90 is hurt by tariffs because most of its components are European-made, which are now subject to 25% tariffs. The EX90 starts at $81,290 but struggled to gain traction with U.S. consumers, with less than 2,000 sold in the first half of 2025. Its South Carolina factory can make up to 150,000 of the cars annually. The company said on Wednesday it would add its popular SUV XC60 hybrid to the factory in 2026.
