STOCKHOLM: Sweden-based Volvo Cars reported on Wednesday a fourth straight month of falling sales volumes, pressured by trade tariffs and weaker electric vehicle demand.
Volvo Cars, which is majority-owned by China’s Geely, said in a statement it sold 62,858 cars in June, a 12% drop from a year earlier.
The group, which in April withdrew its earnings forecast for the next two years in the face of tariffs, said sales of fully electric cars fell 26% to account for 22% of total sales volumes.
Sales of electrified cars as a whole, also including plug-in hybrids, were down 19% to account for 44% of total sales volumes.
“This month’s performance is an example of the tough conditions that we have indicated,” a Volvo Car spokesperson told Reuters in an emailed response to questions.
Volvo Cars to cut 3,000 jobs in restructuring
“We anticipated 2025 would be a challenging transition year on the path to our long-term growth ambitions,” she added.
Volvo Cars said in May it would cut 3,000 mostly white-collar jobs as it struggles with cost increases, a slowdown in electric vehicle demand and global trade uncertainty.
Its sales volumes in Europe were down 14%, while in the U.S. and China they were down 7% and 3%, respectively.
Shares in the company were up 4.8% at 1348 GMT, but have fallen 24% so far this year.
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