wiredesk

Volvo Cars returns to profit but shares slide on weak China sales and margin squeeze

· Business SWE

Volvo Cars returned to a second-quarter net profit of 417 million kronor, reversing an 8.1 billion kronor loss a year earlier, after signing a €119 million support deal with Belgian authorities for its Ghent plant earlier this week.

Revenues fell to 77.7 billion kronor ($8.05 billion) from 93.5 billion kronor as sales volumes dropped 6 percent to 171,500 vehicles. The decline was led by a 35 percent plunge in China, while CEO Håkan Samuelsson cited Middle East conflict and global uncertainty alongside Chinese weakness, though he noted US sales grew in May and June. Shares dropped 8 percent on Thursday as the gross margin narrowed to 16.8 percent from 18.5 percent in the first quarter.

Volvo cut roughly 3,000 positions versus early 2025 and delivered 5 billion kronor in indirect savings six months early. The company expects stronger second-half sales and rising margins alongside the EX60 SUV ramp-up.

Covered by 18 outlets across 12 countries

Sources

The reporting this story is built on

finance.yahoo.com USA Volvo Cars sees declining sales in 'challenging' environmentrte.ie IRL Volvo Cars sees stronger second half despite China slumpcna.com.tw TWN 瑞典富豪汽車Q2銷售下滑　稱環境極具挑戰
Additional coverage

Others reporting the same event

nikkei.com JPN 決算:ボルボの26年4〜6月期、関税負担減で営業黒字 中国市場は不振 - 日本経済新聞dn.se SWE Volvo Cars rasar: ”Svårt att få ihop pengarna”di.se SWE Kina-volymtapp sänkte Volvo Carsberlingske.dk DNK Kollaps i Kina rammer Volvo hårdt på børsenvrt.be BEL "Fabriek is gered": Volvo belooft nieuwe investering in Gent (in ruil voor Vlaamse centen) | VRT NWS Nieuwsdemorgen.be BEL ‘Zo is de cirkel rond’: hoe België met Volvo Gent nu zelf de Chinese auto-industrie subsidieerteuropapress.es ESP Volvo Cars entrega las primeras unidades del nuevo EX60, su 'super' SUV eléctrico desde 64.900 eurosrtbf.be BEL Volvo Cars s’engage pour l’avenir de son usine de Gand en investissant 119 millions d’euros

Related stories

Volvo Cars secures €119 million Belgian state support for Ghent plant Volvo Cars has signed a letter of intent with Belgian authorities for financial support of up to €119 million from the federal government and the Flanders regio… Polestar reports flat first-half sales as US ban looms over Chinese-backed EV maker Polestar delivered 30,423 vehicles in the first half of 2026, a marginal 0.4% increase from a year earlier, as the Swedish-Chinese electric vehicle maker naviga… Volkswagen Group deliveries fall nearly 9% in second quarter as China sales slump Volkswagen Group delivered 2.08 million vehicles worldwide in the second quarter of 2026, a drop of nearly 9 percent from a year earlier, dragged down by a stee… Porsche sales fall 16 percent in first half as China demand slumps Porsche reported a sharp decline in global deliveries during the first half of 2026, with sales falling 16 percent to roughly 122,300 vehicles compared with the… Stellantis second-quarter shipments rise 10% on strong North American and European demand Stellantis reported preliminary second-quarter vehicle shipments of nearly 1.6 million units, a 10% increase from a year earlier, as renewed product lines in No… Mercedes-Benz first-half sales fall 6% as China demand slides Mercedes-Benz sold 1.01 million vehicles worldwide in the first half of 2026, a 6% decline from a year earlier, as the German automaker grappled with a sharp do…