This photograph shows a partial view of a Volvo X30 electric car with the company logo at the Volvo factory in Ghent on April 25, 2025. This factory will produce the Volvo X30 100% electric model for the European market.
Nicolas Tucat | Afp | Getty Images
Shares of Sweden’s Volvo Cars tumbled as much as 19% on Thursday morning, putting the company on track for its worst trading day ever.
The automaker, which is owned by China’s Geely Holding, posted a substantial drop in fourth-quarter operating profit, citing the impact of U.S. tariffs, negative currency effects and weak demand.
Volvo Cars said fourth-quarter operating income excluding items affecting comparability fell by 68% to 1.8 billion Swedish krona ($200.46 million) compared to the same period a year prior.
“We have a very challenging market, especially in China, very tough competition. All of our European colleagues have the same problem,” Volvo Cars CEO Hakan Samuelsson told CNBC’s “Europe Early Edition” on Thursday.
He added the discontinuation of EV incentives in the U.S. and China were also contributing to “a very challenging external environment.”
“But internally we have had very good work done with lowering our costs and securing a positive cash flow, so that I would highlight as the most important positive things that we have reached during the year,” he added.
Shares of Volvo Cars were last seen down 18.1%, having pared some of its earlier losses. A single-session fall of more than 11.2% would reflect the firm’s worst trading day ever.
A tough year ahead
Industry groups, which tentatively welcomed the trade deal at the time, expressed deep concern about the costs associated with the new tariffs.
Volvo Cars has long been considered one of the most exposed European carmakers to U.S. tariffs.
Looking ahead, Volvo Cars said deliveries of its new and fully electric EX60 mid-size SUV will ramp up during the second half of 2026.
However, it warned the year ahead is likely to be another challenging one, with continued pricing pressure, tariff effects, regulatory uncertainty and softer consumer sentiment likely to weigh on the industry.
