Latest news with #VolvoES90
Business Times
a day ago
- 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
Time of India
a day ago
- Automotive
- Time of India
Volvo Cars books $1 billion impairment charge
Sweden-based Volvo Cars is booking a impairment charge of 11.4 billion crowns ($1.2 billion) in the second quarter related to its ES90 and upcoming EX90 models, due to tariffs and launch delays , it said on Monday. The group, which is controlled by China's Geely Holding , said it is currently unable to sell its Volvo ES90, which is built in China, profitably in the United States due to import tariffs, while profit margins for the same model are also 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 in a statement. The impairment charge also reflects significant launch delays in the past and subsequent additional development costs, it said. Volvo Cars, which is due to publish second-quarter results on July 17, said the effect on net income in the period will be 9.0 billion crowns.
Daily Express
a day ago
- Automotive
- Daily Express
Volvo takes US$1.2 billion hit from US tariffs, product delays
Published on: Tuesday, July 15, 2025 Published on: Tue, Jul 15, 2025 By: AFP Text Size: Volvo Cars intended to introduce the ES90 luxury sedan to the US market next year, alongside the EX90 all-electric SUV. (Volvo pic) STOCKHOLM: Volvo said on Monday it is booking a US$1.2-billion charge because of US tariffs and production delays that are hitting its two latest electric-powered cars. 'Due to import tariffs the company is currently unable to sell the Volvo ES90 profitably in the US, while ES90 margins are also under pressure in Europe for the same reason,' the carmaker said in a statement to investors. Advertisement In the US, Volvo has to grapple with a 25% import tariff decided by US President Donald Trump in April. Volvo Cars – owned by China's Geely automotive group – had planned to sell its ES90 luxury sedan in the US from next year for a price starting around US$75,000. It was to join the Volvo EX90 all-electric SUV that it started selling this year from US$81,000. But the company said EX90 launch delays and additional development costs, and the tariff barriers to selling the ES90, meant 'we have reassessed volume assumptions for these two cars' and would have to take a non-cash impairment charge. The one-off non-cash impairment charge of SEK 11.4 billion (US$1.2 billion) will be booked in the second quarter of 2025. The carmaker's chief financial officer, Fredrik Hansson, said the tariffs and the production delays have 'resulted in a lower than planned lifecycle profitability'. Volvo makes cars in several plants around the world, including in South Carolina in the US, as well as in Sweden and in China. The company's CEO, Hakan Samuelsson, said in early April that Volvo would increase auto production in the US plant and would likely move ES90 manufacturing there. In late May, the company announced it was cutting 3,000 jobs, around 15% of its office-based workforce, nearly half of them in Sweden.
Business Times
a day ago
- 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
TimesLIVE
a day ago
- Automotive
- TimesLIVE
Volvo books $1bn impairment charge due to tariffs, launch delays
Sweden-based Volvo Cars is booking a impairment charge of 11.4bn crowns (R21,418,740,000) in the second quarter related to its ES90 and upcoming EX90 models, due to tariffs and launch delays, it said on Monday. 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).
