Tag Archives: Volvo

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Volvo Cars Posts SEK 2.9 Billion Core Profit as Turnaround Plan Gains Momentum

Volvo Cars reported an operating result of SEK -10.0 billion for the second quarter of 2025, a figure skewed by significant one-off charges. When adjusted for those exceptional items, however, the company posted a core operating profit of SEK 2.9 billion, signaling that its SEK 18 billion turnaround plan is beginning to gain traction.

The reported loss was primarily driven by an SEK 11.4 billion non-cash impairment tied to revised financial assumptions for the EX90 and ES90 electric vehicle platforms, as well as SEK 1.4 billion in restructuring costs related to the ongoing reduction of 3,000 global positions. Without these items affecting comparability, Volvo’s underlying EBIT margin stood at 3.1%.

Retail sales fell by 12% year-over-year to 181,600 units, and revenues totaled SEK 93.5 billion. Yet despite the dip in volume, CEO Håkan Samuelsson remained upbeat:

“The market continued to be challenging in Q2,” he said. “However, our turnaround actions are starting to show results. In a market with headwinds, we made a clear improvement of free cash flow versus Q1, and our EBIT margin, excluding exceptional items, was slightly higher.”

Turning Point in Volvo’s Transformation

Earlier this year, Volvo launched a sweeping SEK 18 billion cost and cash turnaround plan, now visibly underway. The strategy revolves around three core pillars: profitability, electrification, and regionalisation.

On the profitability front, job cuts and spending reductions are already being implemented, with 1,100 employees having left the company. Efforts to slash material costs include deeper collaboration with Geely Group on procurement and co-developing models for the Chinese market. At the same time, Volvo has slowed its investment pace and reduced working capital demands to boost cash flow.

These efforts are setting the stage for sustainable future profitability, supported by advanced manufacturing techniques such as mega-casting, cell-to-body battery integration, and in-house e-motor development.

EV Acceleration: EX60 and ES90 Lead the Charge

Volvo’s future hinges on electrification, and that strategy remains intact. Development of the born-electric EX60, a key entry into the premium midsize SUV segment, is on track. It will be the first model built on Volvo’s next-gen EV platform — designed for lower cost and better performance.

The ES90 all-electric sedan will arrive this autumn, targeting premium buyers with a zero-emissions offering. Meanwhile, the EX90 — following software improvements — is now fully market-ready and manufactured to meet the high standards of Volvo’s customer base.

Recognizing the transitional role of plug-in hybrid vehicles (PHEVs), Volvo is also preparing to launch the XC70, its first extended-range PHEV, with production starting in Q3. This model is expected to perform strongly in China and other markets where charging infrastructure remains limited.

Going Regional: Adapting to a Shifting Global Landscape

With globalization under strain, Volvo is leaning into regionalisation. It is decentralizing governance, starting with its China and Americas operations, to allow faster responses to local market dynamics.

Volvo is also localizing production to mitigate tariffs and supply chain challenges. The XC60 will now be assembled in Charleston, USA, while in Europe, Volvo is building out its Kosice plant in Slovakia, which will produce the upcoming Polestar 7 and a new Volvo model yet to be revealed.

Looking Ahead: Positioned for Recovery

While macroeconomic conditions remain tough, Volvo’s proactive cost and product strategies are already showing early promise. The EX30, now made in Ghent to avoid tariff exposure, is ramping up sales, while the refreshed 90 Series and new models like the EX60, ES90, and XC70 are expected to drive growth.

“When market sentiment improves, Volvo Cars will be well-positioned for profitable growth,” said Samuelsson. “With a future-proof product line-up and a leaner, more efficient organisation, we’re confident in the path ahead.”

Despite the headline figure, the second quarter represents a turning point for Volvo Cars — a moment when restructuring pain starts giving way to operational gains. If momentum continues, 2026 may mark the beginning of a new, electric-powered chapter in the company’s storied history.

Source: Volvo

News

Volvo to Begin U.S. Production of XC60 at South Carolina Plant in 2026

Volvo Cars has officially confirmed that it will begin producing its best-selling XC60 mid-size SUV at its U.S. plant in Ridgeville, just outside Charleston, South Carolina. The move, set to begin in late 2026, comes as the Swedish automaker looks to strengthen its position in the U.S. market while strategically sidestepping tariffs imposed by former U.S. President Donald Trump.

The decision marks a significant milestone for Volvo’s American operations, especially as the XC60 continues to dominate the brand’s sales charts. In the first half of 2025 alone, the XC60 accounted for over 33 percent of Volvo’s U.S. sales, with a 22.9 percent year-over-year increase in June and a total of 21,907 units sold that month.

A Strategic Shift for a Critical Model

“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive U.S. market, while supporting and creating American manufacturing jobs,” said Håkan Samuelsson, CEO of Volvo Cars. “It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the U.S. market.”

The Ridgeville plant, which began operations in 2018, currently assembles the fully electric EX90 flagship SUV and the Polestar 3. However, both models have struggled to gain traction in the U.S. market. By adding the XC60—a proven sales leader—Volvo hopes to invigorate production lines and better align with U.S. consumer preferences.

Luis Rezende, President of Volvo Cars Americas, echoed the sentiment: “The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our U.S. customers. We’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers.”

A Pillar in Volvo’s Global Portfolio

The XC60 isn’t just Volvo’s top performer in the U.S.—it’s a global powerhouse. With over 2.7 million units sold globally, it recently surpassed the iconic Volvo 240 as the brand’s all-time best-selling model. U.S. customers have long gravitated toward the XC60 for its blend of safety, luxury, and Scandinavian design.

The model will be produced in both mild hybrid and plug-in hybrid variants in Charleston. That’s a particularly strategic move, given that 25 percent of XC60s sold in the U.S. this year are plug-in hybrids—making it the fourth best-selling luxury plug-in hybrid in the country. For Volvo, it’s not just about meeting current demand, but also about accelerating its push toward electrification.

Investment in the Future

Volvo has invested $1.3 billion into the Ridgeville facility over the past decade, preparing it for high-volume, flexible production. The plant now includes a state-of-the-art battery pack assembly line and upgraded body and paint shops. These enhancements ensure the factory can handle a wide variety of platforms and powertrains.

Governor Henry McMaster and state officials have played a key role in supporting Volvo’s expansion, with South Carolina’s pro-manufacturing policies and workforce development initiatives cited as major factors in the decision.

Looking Ahead

With the addition of the XC60, Volvo is reinforcing its commitment to building vehicles closer to where they are sold—both to reduce costs and to stay agile in a turbulent global trade environment. While the fully electric EX90 will continue to target forward-looking buyers, the XC60 will serve as the brand’s volume leader and bridge to an electric future.

In a year when Volvo celebrates 70 years in the U.S. and surpasses 5 million vehicles sold stateside, the XC60’s American production marks a new chapter in the company’s legacy—and a bet that South Carolina can deliver for one of Europe’s most storied automakers.

Source: Volvo

News

The Volvo ES90 Is More Than Just Electric — It’s a Carbon-Cutting Pioneer

With the global push toward electrification accelerating, Volvo Cars is steering confidently into the future with the launch of the all-new, fully electric ES90. Scheduled to enter production later this summer, the ES90 is not only a premium executive sedan — it’s a statement of sustainability and technical precision.

What sets the ES90 apart isn’t just its elegant Scandinavian design or cutting-edge 800-volt electric architecture. It’s the low-carbon blueprint behind its creation — a model that aims to redefine how premium electric vehicles are made, powered, and perceived.

A Carbon Footprint That Counts Less

According to Volvo’s third-party verified Life Cycle Assessment (LCA), the ES90 boasts one of the lowest total carbon footprints in the company’s history. Over its full life cycle — from raw material extraction to end-of-life processing — the ES90 emits just 31 tonnes of CO₂ when charged using a standard European energy mix. That figure drops further to 26 tonnes when the car is powered entirely by wind energy.

To put this in context, the ES90’s footprint is 50% lower than the S90 mild hybrid and 30% lower than the plug-in hybrid S90. It also undercuts its electric siblings, the EX40 and EC40 — showcasing not only how far Volvo has come but how the ES90 may become the benchmark for future electric luxury sedans.

Sustainability Engineered In

Volvo didn’t just electrify the S90 and call it a day. The ES90 is a clean-sheet design, developed with sustainability as a core priority. The company’s signature “clean lines, clean conscience” philosophy is evident throughout.

The ES90 is Volvo’s first model to feature an 800-volt system, enabling faster charging and higher efficiency while reducing the weight of onboard components. Aerodynamic refinements — including a class-leading drag coefficient of 0.25 — enhance range and performance, while also reducing energy consumption.

Under the skin, the ES90 makes extensive use of recycled and responsibly sourced materials:

  • 29% recycled aluminum
  • 18% recycled steel
  • 16% recycled polymers and bio-based materials, including real FSC-certified wood trim

Inside, sustainability meets Scandinavian luxury. Customers can choose Nordico upholstery, a high-quality vegan material made from recycled PET bottles and bio-attributed content.

Blockchain Battery Passport: A World First

In a major leap for supply chain transparency, the ES90 introduces Volvo’s world-first battery passport, built on blockchain technology. This innovation allows both Volvo and future owners to track the origin of raw materials and monitor the health and history of the battery throughout its life — a move that aligns with the company’s ambition to lead not only in electrification, but also in ethical sourcing.

A Public Commitment to Informed Buyers

Volvo has been one of the most transparent automakers when it comes to sustainability. Since releasing its first fully electric model in 2019, the brand has pledged to issue a detailed LCA report for every electric vehicle it produces globally. The ES90 is now the fifth model in that series, following the EX40, EC40, EX30, and EX90.

“We go above and beyond existing legislation and have clear ambitions because that is important to us,” says Vanessa Butani, Volvo Cars’ head of global sustainability. “The ES90 represents our holistic approach to sustainability, including the circular economy, climate-neutral manufacturing, and responsible business.”

Coming Soon to European Roads

The first production-ready ES90s will begin rolling off Volvo’s climate-neutral assembly lines later this summer. The model is already available for order across 17 European markets, including Germany, Sweden, the UK, and France, with further global expansion set for late 2025 and into 2026.

With its bold combination of zero-emission driving, advanced materials, and full lifecycle transparency, the ES90 marks a significant step forward — not just for Volvo, but for the electric vehicle industry as a whole.

In a market increasingly driven by both performance and purpose, the ES90 doesn’t compromise — it leads.

Source: Volvo