Thursday saw Volvo Cars reduce its revenue and profitability goals following the company’s announcement that it will no longer be aiming for 100% all-electric vehicle sales by 2030.
A target of 7-8% for 2026 EBIT (earnings before interest and taxes) margin has been lowered from “above 8%” by the Swedish automaker, which is primarily controlled by China’s Geely Holding.
The company attributed this change to “increased complexity especially in relation to global trade and tariffs.”
In place of adhering to its previously declared revenue target of between 500 billion Swedish kronor ($48.6 billion) and 600 billion kronor, it further stated that it was now aiming to “continue outgrowing the premium car market until 2026.”
As automakers manage geopolitics between the United States, China, and the European Union while also trying to gain a competitive edge in a market dominated by the electric vehicle transition, constantly changing international trade conflicts and tariffs have become a major source of headaches. After falling 10% so far this week, Volvo Cars shares were up 3.2% in early afternoon trading.
Source (CNBC)
