The Volvo Vehicles Hill gross sales supplier in Austin, Texas.
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Sweden -based automotive producers Volvo Vehicles plans to alter an assault in the US as Washington’s commerce charges take their affect.
Volvo Vehicles, which is owned by Geely Holding in China, on Thursday reported The second quarter operational revenue, except comparability gadgets, fell to $ 2.9 billion in Swedish Kronor ($ 297.83 million), which is lower than $ 8 billion final yr.
The second quarter income dropped to 93.5 billion kroner, in comparison with 101.5 billion kroner over the identical interval in 2024.
Volvo Vehicles, which is broadly thought of one of the uncovered European automotive producers at US tariffs, stated the end result displays the present difficult atmosphere for the automotive business. The corporate stated it was additionally influenced by a earlier A one -time depreciation charge of 11.4 billion crown impairment.
The second quarter revenue comes shortly after Volvo vehicles launched He plans so as to add his best-selling XC60 Sports activities Utility Automobile to the manufacturing line of his US vehicle manufacturing unit in Ridgil outdoors Charleston in South Carolina.
The manufacturing of XC60, which is the best-selling mannequin of the corporate worldwide for years, is deliberate to begin on the manufacturing unit on the finish of 2026.
On the similar time, Volvo Vehicles started to drag sedan and garnish wagons from its American portfolio in opposition to the background of reducing curiosity, Reuters reported Thursday. It comes because the US tariffs of 27.5% for vehicles manufactured in Europeans and 100% for EV, imported from China, pressured automotive producers to view their product methods.
Volvo Vehicles Håkan Samuelsson CEO stated the corporate “positively” no “no” from the US market, the place it has been current for 70 years.
“What we do is first, we need to fill our manufacturing unit we now have in South Carolina. This must be the strategic asset that was supposed. So, we now have to make use of it extra,” Samuelson instructed CNBC “Europe Early Edition“On Thursday.
“Second, after all, now with tariffs it is vitally pure to introduce [car model with] Massive gross sales quantity. We carry within the SUV XC60, “he added.
