{"id":329,"date":"2025-07-17T06:33:19","date_gmt":"2025-07-17T06:33:19","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=329"},"modified":"2025-07-17T06:33:19","modified_gmt":"2025-07-17T06:33:19","slug":"volvo-cars-reports-first-operating-loss-since-2021-ipo","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=329","title":{"rendered":"Volvo Cars reports first operating loss since 2021 IPO"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=ea6c3e2c-e2e7-4e28-ab9d-ad60ff82cca2\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Volvo Cars has reported its first operating loss since its 2021 stock market listing in Stockholm as higher US tariffs and restructuring costs hurt its profitability.\u00a0<\/p>\n<p>The Swedish group, owned by China\u2019s Geely, reported on Thursday an operating loss of SKr10bn ($1bn) for the April to June quarter, compared with a profit of SKr8bn a year earlier and an average analyst estimate of a profit of SKr2.3bn, according to S&amp;P Capital IQ.\u00a0<\/p>\n<p>Revenue also declined 8 per cent to SKr 93.5bn as retail sales declined in markets including Europe and China.<\/p>\n<p>\u201cDemand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition,\u201d said chief executive H\u00e5kan Samuelsson in a statement. \u201cThis all continues to put pressure on volumes and profitability for us, as well as for the entire automotive sector.\u201d<\/p>\n<p>The results from Volvo Cars kick off what analysts expect to be a challenging earnings season for the automotive industry as companies grapple with the fallout of US President Donald Trump\u2019s trade war. <\/p>\n<p>Earlier in the week, the company warned of a one-off charge of SKr11.4bn and said it had been unable to sell its new ES90 \u2014 which is built in China \u2014 profitably in the US because of Trump\u2019s 25 per cent tariff on imports of foreign-made cars.<\/p>\n<p>In addition to its high exposure to tariffs, Volvo Cars has struggled with launch delays and software issues with its flagship EX90 sport utility vehicle.<\/p>\n<p>Excluding the one-off charge, however, Bernstein analyst Harry Martin noted that the company\u2019s results were better than expected as it sold more emissions credits in the second quarter than in the whole of 2024. Rival carmakers lagging behind in sales of electric vehicles have bought credits from Volvo Cars to meet the EU\u2019s tough emissions regulations.\u00a0<\/p>\n<p>To address the deteriorating business environment, the company has announced 3,000 job cuts globally to save costs. <\/p>\n<p>It is also increasing production in South Carolina to offset the tariffs and revealed on Wednesday that it would start producing its XC60 mid-size SUV in the US from late 2026.<\/p>\n<\/div>\n<p>#Volvo #Cars #reports #operating #loss #IPO<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Volvo Cars has reported its first operating loss since its 2021 stock market listing in Stockholm as higher US tariffs and restructuring costs hurt its profitability.\u00a0 The Swedish group, owned by China\u2019s Geely, reported on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[582,586,585,584,583,581],"class_list":{"0":"post-329","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-cars","9":"tag-ipo","10":"tag-loss","11":"tag-operating","12":"tag-reports","13":"tag-volvo"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=329"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/330"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}