Volvo Faces Sales Decline Amid Tariff Concerns

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

Regional Sales Impact

The auto sector saw a sharper decline, with sales dropping 9% to SEK 89.9 billion ($8.3 billion). This downturn was notably felt in Africa, Europe, and South America. Despite these challenges, the company maintained an operating profit of SEK 13.2 billion ($1.2 billion), achieving a 10.9% operating margin.

Adapting to Geopolitical Changes

Lundstedt emphasized the company's resilience, stating, "In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs. However, we have strong regional value chains and global capabilities." Volvo is actively adjusting its production and commercial strategies to mitigate tariff impacts and sustain demand.