Sweden’s Volvo Cars announced a stronger-than-expected third-quarter profit today, leading shares to jump around 40% and setting up the stock for its best trading day ever.
In Q3, the company reported operating income of $680.4 million for the July-September period, largely driven by its ongoing 18 billion kronor cost-saving program.
Volvo Cars CEO Håkan Samuelsson told investors, “During the third quarter of 2025, our performance continued to be under pressure due to a shrinking total premium market and tough competition, especially in the fully electric segment… Despite the positives, we still face several challenges, including continued price competition and the effects of US import tariffs. However, the recent tariff agreement between the US and EU offers much-needed clarity and also lowers tariffs for imports to the EU.”
In the America’s region, Samuelsson stated, “In the US, we announced that we will add a new hybrid model to our Charleston plant before the end of this decade. This new model comes in addition to our plans for local production of our best-selling XC60. Together, these cars will improve capacity utilisation at our Charleston plant to better serve the US market.”
Volvo Cars also stated that it anticipates greater benefits from its cost-cutting measures in the last three months of the year.
Looking ahead, “In the short term, the market is expected to be increasingly challenging, as macroeconomic challenges will remain,” Samuelsson concluded.
By CEO NA Editorial Staff
