The already economically strained car manufacturer "adjusts the financial assumptions for the EX90 and ES90 platform".
"Given the market development, including import duties in the USA, delays in the development and launch of EX90 and strategic investment priorities, we have reassessed our assumptions for the volumes of these two cars. This has resulted in a lower profitability over the life cycle", says the CFO Fredrik Hansson in the press release.
The write-down, which should not affect the cash flow, will be reported in the interim report for the second quarter of 2025 on July 17. The effect on the net result after tax amounts to 9 billion kronor.
The share falls substantially on the Stockholm Stock Exchange and is 4.2 percent lower after the announcement.
Volvo has reported substantially declining sales figures over the past few months compared to the same periods the previous year, and in mid-June it was announced that thousands of cars would be recalled due to brake defects.
At the same time, the share has performed strongly over the past month and is, despite Monday's fall, up over 7 percent since mid-June.
