Not out of the woods yet?
Volvo Cars (VOLCAR-B.STO) said today that it posted a Q2 group operating profit (EBIT) of SEK -10.0 billion.* The gigantic loss followed a warning this week that it would take an impairment charge (read AutoInformed.com on: Chinese Trade Wars – Volvo Q2 2025 Impairment Charge). The Chinese owned company also said that it would build its best-selling car in the U.S. in South Carolina starting in late 2026 (Volvo Cars to Build XC60 SUV in Ridgeville).** The loss, down from a profit of 8B SEK year-over year, appears to have surprised analysts who thought the loss would be much higher.
“The market continued to be challenging in Q2 as well,” said Håkan Samuelsson, President and CEO of Volvo Cars. “Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition. However, our turnaround actions are starting to show results. In a Q2 market with headwinds we made a clear improvement of free cash flow versus Q1 and our EBIT margin excluding items affecting comparability was slightly higher.”
Volvo Cars Q2 2025 Results at a glance
- Q2 revenue was SEK 93.5 bn (SEK 101.5 bn in Q2 2024).
- Q2 EBIT included items affecting comparability of SEK 12.9 bn, consisting of an impairment of SEK 11.4 bn and restructuring charge of SEK 1.4 bn.
- Q2 EBIT was SEK -10.0 bn (SEK 8.0 bn in Q2 2024).
- Q2 EBIT excluding items affecting comparability was SEK 2.9 bn.
- Q2 EBIT margin was -10.6% (7.9% in Q2 2024).
- Q2 EBIT margin excluding items affecting comparability was 3.1%.
- Q2 basic earnings per share was SEK -2.53 (SEK 1.79 in Q2 2024).
- Q2 electrified car sales share at 44% (48% in Q2 2024), of which fully electric share at 21% (26% in Q2 2024).
Volvo Cars sold 181,600 cars in Q2, a decline of 12% compared to the same period in 2024. For the first six months, sales are down 9% compared to the first half of 2024.
Earlier this year the Volvo Cars began a SEK 18 billion cost and cash turnaround plan. “This is starting to have an impact with the full effects coming in 2026. The plan supports the company’s strategic direction which rests on three pillars: profitability, electrification and regionalization,” Volvo Cars said.
“Looking at profitability first, the turnaround plan is on track. The reduction of 3000 positions globally is going into execution, and approximately 1,100 people have already left Volvo Cars. Together with spending cuts this will lower its indirect cost base and establish a leaner and more efficient organization.
“In terms of direct cost reductions, the company has started to execute on several actions to reduce material costs. One element is to utilize more synergies within the Geely group by collaborating on procurement. Another synergy area is to develop new car models together especially for the China market. Volvo Cars has also effectively implemented cash actions including a reduction of working capital and a reduced investment pace.
“The company’s investment volume will ease off as planned as Volvo Cars has made almost all major investments related to its new product architecture. This will deliver significant future cost reductions and performance improvements thanks to mega-casting, cell-to-body battery technology and more efficient, in-house developed e-motors.
“The first car on this new architecture is the all-electric Volvo EX60, a car for the company’s important best-selling segment. It will deliver improved performance and lower product costs necessary for Volvo Cars’ continued transformation towards full electrification.
“Most analysts expect demand for fully electric cars to continue growing and to outgrow traditional combustion engine cars by 2030. Consequently, most of the company’s development efforts remain firmly focused on electrification.
“Meanwhile, Volvo Cars will also refresh its plug-in hybrid (PHEV) cars to offer an attractive bridge solution for customers and areas where charging infrastructure still is weak. The company will soon launch its first extended-range PHEV, the all-new XC70, and start production during the third quarter. It is an answer to a growing demand for such powertrains, and it will first be offered in China where Volvo Cars sees big opportunities for this car.
“The XC70 is a good example of regionalization, the third pillar. With globalization in retreat, Volvo Cars is adapting to a more regionalized world. The company is empowering its three key regions to be more adaptive to regional requirements and customer preferences to be able to accelerate profitable growth.
“Volvo Cars is implementing a new governance model for its China operations, with a clear regional performance, operational and decision-making responsibility. In the Americas, a dedicated governance model will also be introduced,” Volvo Cars claimed.
*$1= ~9.7352 Swedish crowns (SEK)
**Volvo Cars is a subsidiary of Geely Holding, which owns ~ 78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Volvo Cars Posts Q2 2025 -10B SEK Loss
Not out of the woods yet?
Volvo Cars (VOLCAR-B.STO) said today that it posted a Q2 group operating profit (EBIT) of SEK -10.0 billion.* The gigantic loss followed a warning this week that it would take an impairment charge (read AutoInformed.com on: Chinese Trade Wars – Volvo Q2 2025 Impairment Charge). The Chinese owned company also said that it would build its best-selling car in the U.S. in South Carolina starting in late 2026 (Volvo Cars to Build XC60 SUV in Ridgeville).** The loss, down from a profit of 8B SEK year-over year, appears to have surprised analysts who thought the loss would be much higher.
“The market continued to be challenging in Q2 as well,” said Håkan Samuelsson, President and CEO of Volvo Cars. “Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition. However, our turnaround actions are starting to show results. In a Q2 market with headwinds we made a clear improvement of free cash flow versus Q1 and our EBIT margin excluding items affecting comparability was slightly higher.”
Volvo Cars Q2 2025 Results at a glance
Volvo Cars sold 181,600 cars in Q2, a decline of 12% compared to the same period in 2024. For the first six months, sales are down 9% compared to the first half of 2024.
Earlier this year the Volvo Cars began a SEK 18 billion cost and cash turnaround plan. “This is starting to have an impact with the full effects coming in 2026. The plan supports the company’s strategic direction which rests on three pillars: profitability, electrification and regionalization,” Volvo Cars said.
“Looking at profitability first, the turnaround plan is on track. The reduction of 3000 positions globally is going into execution, and approximately 1,100 people have already left Volvo Cars. Together with spending cuts this will lower its indirect cost base and establish a leaner and more efficient organization.
“In terms of direct cost reductions, the company has started to execute on several actions to reduce material costs. One element is to utilize more synergies within the Geely group by collaborating on procurement. Another synergy area is to develop new car models together especially for the China market. Volvo Cars has also effectively implemented cash actions including a reduction of working capital and a reduced investment pace.
“The company’s investment volume will ease off as planned as Volvo Cars has made almost all major investments related to its new product architecture. This will deliver significant future cost reductions and performance improvements thanks to mega-casting, cell-to-body battery technology and more efficient, in-house developed e-motors.
“The first car on this new architecture is the all-electric Volvo EX60, a car for the company’s important best-selling segment. It will deliver improved performance and lower product costs necessary for Volvo Cars’ continued transformation towards full electrification.
“Most analysts expect demand for fully electric cars to continue growing and to outgrow traditional combustion engine cars by 2030. Consequently, most of the company’s development efforts remain firmly focused on electrification.
“Meanwhile, Volvo Cars will also refresh its plug-in hybrid (PHEV) cars to offer an attractive bridge solution for customers and areas where charging infrastructure still is weak. The company will soon launch its first extended-range PHEV, the all-new XC70, and start production during the third quarter. It is an answer to a growing demand for such powertrains, and it will first be offered in China where Volvo Cars sees big opportunities for this car.
“The XC70 is a good example of regionalization, the third pillar. With globalization in retreat, Volvo Cars is adapting to a more regionalized world. The company is empowering its three key regions to be more adaptive to regional requirements and customer preferences to be able to accelerate profitable growth.
“Volvo Cars is implementing a new governance model for its China operations, with a clear regional performance, operational and decision-making responsibility. In the Americas, a dedicated governance model will also be introduced,” Volvo Cars claimed.
*$1= ~9.7352 Swedish crowns (SEK)
**Volvo Cars is a subsidiary of Geely Holding, which owns ~ 78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.