Volvo reports $1.2bn hit from tariffs, launch delays
By Benjamin Chiou
Date: Tuesday 15 Jul 2025
(Sharecast News) - Swedish auto giant Volvo has warned that it will take a $1.2bn impairment in its second-quarter results due to trade tariffs and delays to the launch of two electric models in the US.
The company, which is scheduled to publish its second-quarter numbers on Thursday, said it will be unable to sell its China-made ES90 sedan in the US due to import tariffs, while the EX90 SUV has been hit by launch delays and higher development costs.
As a result, Volvo expects to recognise a SEK11.4bn charge for the second quarter.
"Given market developments such as import tariffs in the U.S., development and launch delays for the EX90 and strategic investment prioritizations, we have reassessed volume assumptions for these two cars," said Fredrik Hansson, chief financial officer.
"This has resulted in a lower-than-planned lifecycle profitability."
The announcement, which came late on Monday, dented the share price by 4.4%, before it bounced back 1% to SEK271.90 by 1229 in Stockholm on Tuesday.
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