Latest news with #VolvoCarAB
Bloomberg
2 days ago
- Automotive
- Bloomberg
Volvo Takes $1.2 Billion Charge Over Tariffs and EV Model Delays
Volvo Car AB is taking an impairment charge of 11.4 billion Swedish kronor ($1.2 billion) due to delays to some of its electric models and the escalating cost of tariffs. Past development setbacks and duties in the US have hit Volvo's battery-powered models, the EX90 sport utility vehicle and ES90 sedan. The effect of the one-time non-cash charge on net income will be 9 billion kronor in the second quarter, the carmaker said Monday.
Bloomberg
26-05-2025
- Automotive
- Bloomberg
Volvo Car to Cut 3,000 Jobs to Become Leaner, Protect Profits
Volvo Car AB plans to eliminate around 7% of its global workforce as the Swedish carmaker cuts costs to counter muted demand and protect profits. The move will affect around 3,000 positions, including 1,000 consultants, Volvo said Monday. The manufacturer employs around 43,800 people, more than half of them in Sweden.
Bloomberg
23-05-2025
- Automotive
- Bloomberg
Volvo Cars CEO Rebuffs Reports Claiming EX60 Delayed
Volvo Car AB's Chief Executive Officer Hakan Samuelsson rejected a report that work on the new EX60 model, a fully electric mid-size SUV set for launch next year, had fallen behind schedule. Asked about the report in Swedish newspaper Dagens Industri, Samuelsson said 'I don't know of anything [about a delay], and I should know if there was something.' The model will be released 'exactly as planned' in 2026, the CEO said in an interview on Friday.
Hindustan Times
29-04-2025
- Automotive
- Hindustan Times
From Porsche to Adidas, Donald Trump tariff toll spreads in Europe
European companies, from carmakers and brewers to airlines, have sounded a warning that US President Donald Trump's import tariffs are beginning to wreak havoc on their businesses. For some, the levies are squeezing margins, weighing on sales and prompting often costly efforts to shift production to the US. For nearly all, uncertainty around the eventual level of duties is making effective forecasting almost impossible. Porsche AG warned of shrinking profit margins this year in part because of US levies, which hit the luxury carmaker's sales in April and will also affect performance in May. The shares tumbled as much as 7.6% in German trading, and have lost half their value in the past year. Rival Volvo Car AB announced plans to slash costs by nearly $2 billion as slack demand and trade tensions weigh on the industry. The carmaker withdrew its financial guidance for this year and next because of tariff uncertainty, while Chief Executive Officer Hakan Samuelsson told Bloomberg Television the duties are 'disturbing a global company massively.' Associated British Foods Plc said that with many of its garments manufactured in Asia, its budget fashion chain Primark will see a short-term impact from higher US tariffs. Primark will have to put up prices on some of the items it sells in the US, which is a labor-intensive, costly process, said CEO George Weston. Even companies that are currently seeing robust demand, like Adidas AG and Deutsche Lufthansa AG, are fretting over the potential impact of the US duties as the year wears on. The sneaker maker, which reported better-than-expected first-quarter profit, said it was holding off on boosting its full-year forecast because of the trade war. CEO Bjoern Gulden cited uncertainties related to the tariffs 'that could put negative pressure' on its forecast later in the year. Lufthansa also cautioned that it has only limited visibility into the latter part of the year as trade tensions and changing consumer behavior throw the economy into disarray. Europe's biggest airline group said macroeconomic uncertainty, particularly the US-Europe trade conflict, is clouding forecasts for the key summer season. AstraZeneca Plc CEO Pascal Soriot said tariffs are not the best way to manage pharmaceuticals and that drugmakers are lobbying the Trump administration not to include medicines. The industry has so far been excluded from levies, despite repeated threats from the US president to impose them. 'We actually believe that a better incentive to attract investment in manufacturing and in R&D is to have a great tax policy that incentivizes companies to invest in the country,' Soriot said on Bloomberg TV. Still, Astra said the impact of any tariffs would be short-lived on the company due to its US manufacturing presence. Danish brewer Carlsberg A/S is likely to see less impact from tariffs than some rival beermakers because of its small share of the US market, yet indirect inflationary effects on the supply chain, particularly in packaging, could affect prices, CEO Jacob Aarup-Andersen said. What's more, the global macroeconomic environment remains volatile. 'With the global trade uncertainties we're seeing at the moment we would expect the subdued consumer to continue for awhile,' Aarup-Andersen told Bloomberg TV.
Hindustan Times
29-04-2025
- Automotive
- Hindustan Times
Volvo Car eyes $1.87 billion in cost cuts to protect profits
The CEO's plan is meant to stabilise Volvo after an extended period of disappointing sales and model delays Volvo Car AB is cutting 18 billion Swedish kronor ($1.87 billion) in costs to counter tepid demand and trade tensions weighing on the auto industry. The measures will lead to job reductions, the manufacturer said Tuesday. Volvo also withdrew its financial guidance for this year and next due to the uncertainty sparked by President Donald Trump's tariffs, in a major restructuring under new Chief Executive Officer Hakan Samuelsson. The duties are 'disturbing a global company massively," Samuelsson said in an interview with Bloomberg Television. The CEO's plan is meant to stabilise Volvo after an extended period of disappointing sales and model delays. Samuelsson, 74, began his second stint at the helm of one of Europe's most recognisable auto brands this month as the industry contends with the duties and muted demand for electric vehicles. Samuelsson has already replaced his chief financial officer and sharpened the company's return-to-office policy. He now wants to prioritise Volvo's business in the US and China to offer customers better products there. The company will soon reveal its first extended-range plug-in hybrid for the Asian market, it said. 'Shifting to a localized model will take time," Bernstein analysts led by Harry Martin said in a note. 'The pain is real and here to stay." The carmaker's shares fell as much as 11% in Stockholm. The stock is down around 31% this year. Brought back by billionaire Geely chairman Li Shufu after leading Volvo for a decade until 2022, Samuelsson has flagged the need to lower expenses and produce more in the US because of the auto duties. The company still exports a significant share of vehicles from Europe to the US. Volvo will pass on some of the tariff costs to consumers while absorbing others, the CEO told Bloomberg TV. The company needs to bolster output at its factory in South Carolina and is looking into adding a 'conventional or hybrid" car to the production lineup there, he added. Volvo's restructuring includes reducing material expenses by 3 billion kronor and white-collar personnel costs by 5 billion kronor, while lowering investments and inventories for another 10 billion kronor in reductions, the CEO said. The majority of the effects from the plan will be realised next year. The manufacturer also reported first-quarter revenue and operating income that missed analyst estimates. Volvo has lost two-thirds of its value since its 2021 IPO and has become a target for short sellers. Check out Upcoming Cars in India 2024, Best SUVs in India. First Published Date: 29 Apr 2025, 14:21 PM IST
