Volvo Cars Warns of Challenging 2025 Following Profit Decline in Q4

The automaker forecasts slower growth, increased competition, and tariff impacts while adjusting its electric vehicle strategy.

Volvo Cars reported a 28% drop in operating profit for Q4 2024, partly due to a 1.7 billion kronor writedown on its battery joint venture with Northvolt.
Despite the Q4 decline, the company achieved a 13% increase in net profit for 2024, driven by an 8% rise in sales and cost-saving measures.
The automaker anticipates 2025 to be a turbulent year, citing slower market growth, heightened competition in the electric vehicle sector, and global tariff challenges.
In response to EU and U.S. tariffs on vehicles made in China, Volvo Cars plans to shift production of one model from China to Belgium.
The company has scaled back its goal of becoming fully electric by 2030, now targeting 90-100% electric vehicle sales, as EV adoption rates vary globally.