Financial Performance - Volvo reported a revenue of 93.5 billion Swedish Krona for Q2 2025, a decline from 101.5 billion Swedish Krona in Q2 2024 [1] - The operating profit decreased to 2.9 billion Swedish Krona, down from 8.2 billion Swedish Krona in the same period last year [1] - The company faced a net loss of 7.51 billion Swedish Krona, contrasting with the previous year's performance [1] Sales Data - Global retail sales fell to 181,600 units in Q2 2025, a decrease from 205,400 units in Q2 2024, representing a decline in demand [1] - Sales of pure electric vehicles dropped by 26% year-on-year, indicating a weakening market for electric models [1] - In Q2 2024, the company experienced a 15% increase in overall sales, with a notable 43% growth in new energy vehicles [1] Challenges and Adjustments - The primary reason for the financial loss was attributed to a financial impairment adjustment related to the EX90 and ES90 platforms, leading to an asset impairment of 11.4 billion Swedish Krona [1] - The company incurred an additional 1.4 billion Swedish Krona in restructuring costs, compounding financial pressures [1] - External factors such as macroeconomic uncertainty, tariff policy fluctuations, and intensified market competition continue to challenge production and profitability [1] Strategic Responses - Volvo is reducing its product lineup by halting sales of certain models in the U.S. and discontinuing models like the S60 and S90 [3] - The company has made asset adjustments, including a significant impairment provision for the EX90 model [3] - Plans are underway to launch a new mid-size SUV, the XC60, by the end of 2026 to seek growth opportunities in the evolving market [3] - In the Chinese market, the CEO emphasized the need to focus on local demand rather than simply replicating European product strategies [3]