Latest news with #VolvoCar
Economic Times
7 days ago
- Automotive
- Economic Times
European auto shares rally after US-Japan trade deal
Shares in major European carmakers rose on Wednesday, tracking a steep rally in some of their Asian rivals, after Tokyo struck a trade deal with the United States, fuelling optimism for a similar agreement with Europe. ADVERTISEMENT Shares in Japanese and South Korean automakers surged overnight on news the deal would cut the U.S. tariff on Japanese vehicle imports to 15%, from a proposed 25%. Volvo Car jumped around 7% to its highest since mid-May. Germany's Porsche, BMW, Mercedes Benz, Volkswagen all rose between 3.8% and 6.8%. Shares in Stellantis and Renault were up around 3%. The European auto stocks index rose 3.4% by 0706 GMT, the most among other sectoral indices, compared with a 0.9% rise in the regional STOXX 600 index. The European Commission is seeking to reach a trade deal outline with the United States ahead of the August 1 deadline set by U.S. President Donald Trump for broad tariff increases. As part of these efforts, Brussels is discussing ADVERTISEMENT with U.S. counterparts a range of measures aimed at protecting the European Union auto industry, including tariff cuts, import quotas and credits against the value of EU automakers' U.S. exports, industry sources and trade officials say. Citi analysts said it was notable the tariffs for a major auto exporting country were reduced without a cap on shipments, which could have implications for negotiations with the EU and South Korea. ADVERTISEMENT Europe shipped nearly 758,000 cars worth 38.9 billion euros ($45.57 billion) to the U.S. in 2024, more than four times as many as in the other direction, according to data from European auto association ACEA. However, a group representing U.S. automakers that includes Chrysler-parent Stellantis signalled their unhappiness with the deal, raising concerns about a trade regime that cuts tariffs on auto imports from Japan, while leaving tariffs on imports from their plants and suppliers in Canada and Mexico at 25%. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Times
17-07-2025
- Automotive
- Business Times
Volvo Car posts US$1 billion loss over impairment, tariffs
[STOCKHOLM] Volvo Car posted a US$1.03 billion operating loss in the second quarter, hit by a previously announced impairment charge over model delays and the escalating cost of tariffs. The automaker's retail sales plunged 12 per cent to 181,600 vehicles in the period. Volvo's cost-cutting programme is on track, the company said on Thursday (Jul 17). Controlled by China's Zhejiang Geely Holding Group, Volvo is one of the more tariff-exposed car brands. Tariffs and past development setbacks have weighed on profitability and sales of its battery-powered models, the EX90 sport utility vehicle and ES90 sedan. On Wednesday, the company announced plans to start producing its best-selling XC60 at its US plant, a sport utility vehicle previously imported from Sweden. Volvo earlier this week warned that it would take an 11.4 billion Swedish kronor (S$1.5 billion) impairment charge over model delays and the growing cost of tariffs. Chief executive officer Hakan Samuelsson was brought back in April by owner Li Shufu to turn around the company by aligning it more closely with the Geely group. He's also pushing through a sweeping 18 billion-krona cost-cutting program set to affect roughly 3,000 jobs. Earlier this month, Samuelsson said the company would delay large-scale production at its under-construction Slovakia plant to early 2027, from a previous target of 2026, to better align product launch timelines. Volvo has also agreed with sister brand Polestar to produce the upcoming Polestar 7 SUV at the same facility starting in 2028. BLOOMBERG
Wall Street Journal
17-07-2025
- Automotive
- Wall Street Journal
Volvo Car Swings to Net Loss on Hit From Restructuring and Impairments Charges
STOCKHOLM—Volvo Car swung to a second-quarter net loss as the deteriorating global auto market saw it book hefty restructuring and impairment charges. The Swedish car maker—which is majority owned by China's Zhejiang Geely Holding Group—had already withdrawn guidance for this year and next as it grapples with growing market uncertainties that have seen lower volumes, increased price pressure and tariffs hitting profits.
Business Times
15-07-2025
- Automotive
- Business Times
Volvo takes 11.4 billion Swedish kronor charge over tariffs and EV model delays
[STOCKHOLM] Volvo Car is taking a one-time non-cash impairment charge of 11.4 billion Swedish kronor (S$1.51 billion) in the second quarter due to delays of some of its electric models and the escalating cost of tariffs. Development delays and duties in the US have hit two of Volvo's battery-powered models, the EX90 sport utility vehicle and ES90 sedan. The effect on net income will be nine billion kronor in the period, the carmaker said on Monday (Jul 14). Its shares fell as much as 5.6 per cent in Stockholm, the steepest intraday drop since April. The stock is down around a quarter this year. 'Due to import tariffs the company is currently unable to sell the Volvo ES90 profitably in the United States, while ES90 margins are also under pressure in Europe for the same reason,' the company said. The Sweden-based automaker, controlled by China's Zhejiang Geely Holding Group, is among the more tariff-exposed global car brands and has previously said that it is looking into adding more production at its US plant. Volvo is also struggling to attract EV buyers in the highly competitive Chinese market, despite its access to the Geely ecosystem. BLOOMBERG
Business Times
15-07-2025
- Automotive
- Business Times
Volvo takes US$1.2 billion charge over tariffs and EV model delays
[STOCKHOLM] Volvo Car is taking a one-time non-cash impairment charge of 11.4 billion Swedish kronor (S$1.51 billion) in the second quarter due to delays of some of its electric models and the escalating cost of tariffs. Development delays and duties in the US have hit two of Volvo's battery-powered models, the EX90 sport utility vehicle and ES90 sedan. The effect on net income will be 9 billion kronor in the period, the carmaker said on Monday (Jul 14). Its shares fell as much as 5.6 per cent in Stockholm, the steepest intraday drop since April. The stock is down around a quarter this year. 'Due to import tariffs the company is currently unable to sell the Volvo ES90 profitably in the United States, while ES90 margins are also under pressure in Europe for the same reason,' the company said in a statement. The Sweden-based automaker, controlled by China's Zhejiang Geely Holding Group, is among the more tariff-exposed global car brands and has previously said it's looking into adding more production at its US plant. Volvo is also struggling to attract EV buyers in the highly competitive Chinese market, despite its access to the Geely ecosystem. BLOOMBERG
