Volvo Cars Faces Pricing Pressures Amid U.S. Tariffs

Volvo Cars reported a slight increase in third-quarter operating profit, despite experiencing pricing pressures and the impact of U.S. tariffs. The Swedish automaker, mainly owned by China's Geely Holding, saw a decrease in net and retail sales. The company aims to mitigate tariff effects by shifting hybrid production to the U.S.

Sweden-based Volvo Cars revealed a modest rise in third-quarter operating profit, excluding items affecting comparability, on Thursday. Despite this, the company continues to struggle with pricing pressures and the impact of U.S. import tariffs.

The majority-owned unit of China's Geely Holding reported an operating profit of 5.9 billion Swedish crowns ($626.6 million), slightly higher than the previous year. Conversely, net and retail sales dropped by 7%.

CEO Hakan Samuelsson noted ongoing challenges from a contracting premium market and fierce competition, especially in the electric car segment. Volvo Cars, heavily impacted by U.S. tariffs, plans to relocate some hybrid production to the U.S. to alleviate these pressures.

(With inputs from agencies.)