Volvo Faces Sales Decline in Q1 2025

Volvo Group has reported a 7% decrease in net sales for the first quarter of fiscal year 2025, totaling SEK 121.8 billion ($11.2 billion), compared to the same period in 2024. CEO Martin Lundstedt highlighted "increased uncertainty surrounding tariffs and their impact on global trade" as a significant factor.

Auto Sales Hit Hard

The auto sector experienced a notable 9% drop in sales, amounting to SEK 89.9 billion ($8.3 billion), with marked declines in Africa, Europe, and South America. Despite these challenges, the company maintained an operating profit of SEK 13.2 billion ($1.2 billion), achieving an operating margin of 10.9%.

Adapting to Geopolitical Changes

Lundstedt emphasized the company's strategy to navigate the "fast-changing geopolitical landscape." With strong regional value chains and global capabilities, Volvo is adjusting production flows, capacity, and commercial terms to counteract the effects of tariffs and fluctuating demand.