GOTHENBURG / LONDON (IT BOLTWISE) – The Volvo Group is facing significant challenges due to US tariff policies, which led to a decline in sales and a slump in profits in the third quarter. The Swedish truck manufacturer is confronted with a difficult market situation characterized by regional sales weaknesses and declining incoming orders. The uncertainties in the North American market could also affect demand in the coming year.
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The Volvo Group, a leading manufacturer of commercial vehicles, is currently facing significant challenges. The impact of US tariff policy led to a decline in sales and a significant drop in profits in the third quarter. Sales fell by five percent compared to the same period last year to 110.7 billion crowns, which corresponds to around 10 billion euros. However, with constant currency, there is a slightly positive trend with an increase of one percent.
The operating profit was particularly affected, which fell to 11.7 billion crowns after adjusting for special items, after previously standing at 14.1 billion. The profit margin fell by 1.4 percentage points to 10.6 percent. Net profit also fell to 7.6 billion crowns, compared to 10.1 billion in the same quarter last year. These numbers highlight the challenges Volvo is currently facing.
Another factor contributing to the weak results is the decline in sales. Volvo delivered 44,631 trucks, a decrease of four percent. The declines were particularly drastic in North and South America, while other regions recorded slight increases. Order intake fell 14 percent to 37,134 trucks, with orders in Europe falling 10 percent while, encouragingly, orders in North America increasing by the same percentage.
Volvo management is concerned about the ongoing impact of US tariff policy on the North American market. It is expected that the uncertainties will continue to affect demand in the coming year. Against this background, heavy-duty truck registrations in North America are expected to decline by 15,000 units to around 250,000. These developments raise questions about Volvo’s future market strategy and adaptability.
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