Volvo's CEO Martin Lundstedt describes the quarter as filled with uncertainty and "wait and see" among customers, especially in North America. This is due to the concern surrounding President Donald Trump's tariff game. During the quarter, the tariffs have had a "limited impact", Lundstedt believes.
But the greater impact is that this created a bit of a waiting position in the economy, not least in the USA. We see this among our customers and we have a lower order intake.
Regarding the EU's potential countermeasures, which may involve negative effects, Lundstedt means that the basic attitude is that the fewer tariffs, the better. When asked if Volvo has requested any exemptions in the EU's ongoing tariff negotiations with the USA, he says that Volvo "does not work that way". Rather, they try to explain the effects - both for the American and European administration - but the decision is up to politics.
I think it's important as corporate management, but also as a company, to focus on what you can influence yourself and not sit in the corner and feel sorry for yourself.
Forced to act
While the European market is described as stable, the uncertainty is all the greater surrounding North America, according to the company, which is now forced to act. Volvo is reducing production capacity there to adapt to the lower demand.
The net sales fell at the same time to 122.9 billion, from 140.2 billion a year earlier. But Lundstedt is not worried about the sales figure.
Partly because we are in this part of the cycle and the economic cycle. Then we also have a currency effect in that the Swedish krona has strengthened. When we translate it back to Sweden, we get this effect simply.
Increased activity in Europe
When asked if there is a risk of staff cuts in Sweden, Lundstedt says that Volvo has good order activity and thus needs deliveries in the European operations. This also applies to the markets that the European operations supply.
Volvo has during the quarter gradually increased activity, not least in Sweden but also in Europe, something that Lundstedt calls "glad". At the same time, the world is characterized by uncertainty and therefore flexibility is also needed.
Right now, it looks good for the European operations, says Lundstedt.
So no clouds of worry regarding cuts?
Not right now.
Tobias Österberg/TT
Ellen Ahinko Andersson/TT
Hanna Rasmusson/TT
Facts: AB Volvo's figures
TT
Volvo's adjusted operating profit landed at 13.5 billion kronor for the second quarter of the year. This can be compared with 19.4 billion during the same quarter last year. This was at the same time in line with market expectations, which were at 13.1 billion. This as the company's result was affected by one-time items of 4.5 billion kronor.
The order intake for trucks, net, was during the second quarter this year 47,761. This can be compared with the order intake of 47,760 trucks during the second quarter of 2024.
The net sales fell at the same time to 122.9 billion, from 140.2 billion a year earlier.
