Latest news with #ZhejiangGeelyHoldingGroup
Business Times
an hour ago
- 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
Business Times
2 days 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
Business Times
2 days 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
Wall Street Journal
2 days ago
- Automotive
- Wall Street Journal
Volvo Car to Take $1.2 Billion Hit From Tariffs, EV Launch Delays
STOCKHOLM–Volvo Car late Monday warned that President Trump's tariffs and launch delays would hit the profitability of two electric models in the U.S., leading to a $1.2 billion one-off charge. The Swedish carmaker, which is majority-owned by China's Zhejiang Geely Holding Group, has been grappling with tariff uncertainty, muted electric-vehicle demand and intensifying competition in China. It recently said it would cut around 3,000 jobs as part of a wider plan to slash costs and become more efficient amid the challenging global auto market.
Yahoo
27-06-2025
- Automotive
- Yahoo
Six Chinese parts makers in deals to supply Proton
Malaysia's first national car-maker, Proton Holdings Bhd, revealed that six Chinese manufacturers have signed agreements to localise production of key components for new vehicle models it plans to produce in the near future. Proton, with China's Zhejiang Geely Holding Group as its strategic partner, confirmed that four new joint venture agreements and two technology transfer agreements have been signed with local companies to help strengthen its local supply chain, covering parts for both internal combustion engine (ICE) vehicles and electric vehicles (EVs). The deals include the local production of systems such as advanced driver assistance systems (ADAS), braking, lighting, and heating, ventilation and air conditioning (HVAC) systems. Chinese supplier Imotion Automotive Technology (Suzhou) Company has agreed to localize production of ADAS systems through a joint venture with local supplier Delloyd Technology Bhd, while Liuzhou Sanly Autoparts Company has agreed to produce braking systems in partnership with PEPS JV (M) Sdn Bhd. Jiangsu Dekai Auto Parts Company has agreed to establish a headlamp production joint venture with Malaysia's JHM Consolidation Bhd, while Shanghai Yinlun Heat Exchange Systems Company will localize production of HVAC systems in partnership with Trillion Speed (M) Sdn Bhd. In terms of technology transfer agreements, Malaysia's SHJ Interia Sdn Bhd has signed a partnership with Changchun Fawsn Automotive Trim Co Ltd, while Xenso Electronics Sdn Bhd will work with Freetech Intelligent Systems Co Ltd to co-develop ADAS rear and side detection systems. Proton confirmed that the agreements will help accelerate the localization rate of new models and bring new technologies into Malaysia's automotive supply chain, helping to improve the competitiveness of its vehicles. Proton's chief procurement officer, Wang Huaibing, said that the deals 'reflect Proton's long-term commitment to manufacturing vehicles in Malaysia, while also establishing an automotive hub. He added: "With high tech components becoming increasingly prevalent in our models, it is important for Proton to bring their development and production of these components into the local ecosystem.' "Six Chinese parts makers in deals to supply Proton" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
