Volvo Cars Reports Lower Profit and Warns of Tough 2025
Sweden-based Volvo Cars reported a drop in profit for the fourth quarter and warned that 2025 will be difficult due to tough market conditions.
The company, mostly owned by China’s Geely, said the car market won’t grow as fast as in past years. Increased competition could also lead to lower prices across the industry.
It will be hard to reach the same sales and profit levels as in 2024, said CEO Jim Rowan.
Still, Volvo kept its profit margin forecast at 7–8%.
In the fourth quarter, operating profit fell to 3.9 billion Swedish crowns ($357 million) from 5.4 billion a year ago. This includes a 1.7 billion crown loss from its battery joint venture, Novo Energy.
Without joint ventures and partners, Volvo’s profit was 6.3 billion crowns, down from 6.7 billion last year.
Demand for electric cars has slowed due to high prices and not enough charging stations. Car makers also worry about new tariffs in Europe and the U.S. on China-made electric vehicles.
