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Sweden's Volvo Cars switches gears in the U.S. as tariffs bite
CNBCยท2025-07-17 06:57

Core Insights - Volvo Cars is adjusting its strategy in the U.S. due to the impact of trade tariffs [1][2] - The company reported a significant decline in second-quarter operating profit and revenue compared to the previous year [1][2] Financial Performance - Second-quarter operating profit excluding items affecting comparability fell to 2.9 billion Swedish kronor ($297.83 million), down from 8 billion kronor in the same period last year [1] - Revenue for the second quarter dropped to 93.5 billion kronor, compared to 101.5 billion kronor in the same period of 2024 [1] Industry Context - Volvo Cars is considered one of the most exposed European carmakers to U.S. tariffs, reflecting a challenging environment for the automotive industry [2] - The company faced a one-off non-cash impairment charge of 11.4 billion kronor, further impacting its financial results [2] Strategic Developments - Volvo Cars plans to add its best-selling XC60 sports utility vehicle to the production line at its U.S. plant in Ridgeville, South Carolina, with production scheduled to start in late 2026 [3]