Car manufacturer Volvo Cars has, like the entire sector, been characterized by decreased demand. In connection with the year-end report, the company is now painting a continued bleak picture where the market, according to the company, will remain weak and not grow to the same extent as before.
The CFO points out decreasing demand, increased price pressure on the market, and tariff threats as some of the dark clouds on Volvo's car horizon.
We want to grow profitably and prioritize value over volume. But we are also part of a competitive global market, says Ekdahl.
2025 will be a transformative year where it will be difficult to reach the same levels as we did in 2024 in terms of both volumes and profitability.
Battery Company Weighs Down
For the fourth quarter, Volvo Cars reported an operating profit of 3.9 billion kronor, far from market expectations of 6 billion kronor.
The result is, however, weighed down by a write-down of the battery company Novo Energy, where Volvo Cars has now taken over after the battery manufacturer Northvolt.
The operating margin of 3.4 percent was also far from expectations (on average 5.75 percent).
Revenues, on the other hand, amounted to 112 billion kronor. Here, analysts had expected an average of 108 billion kronor, according to Bloomberg's compilation.
Despite sales falling in December, Volvo set a new global sales record with 763,389 cars sold during the full year 2024.
"Following the Development"
With Donald Trump as president in the USA, the threat of tariffs has been actualized in recent times. Not least within the automotive sector, which has been pointed out as a major loser.
However, how such a scenario will affect Volvo Cars is difficult to predict at present, claims Johan Ekdahl.
But we are naturally following the development closely and looking at different scenarios, he says.
The Volvo Cars share fell by more than 6 percent on the Stockholm Stock Exchange after the figures.
