Volvo withdraws annual forecast after quarterly collapse

Stockholm. Swedish automaker Volvo is withdrawing its annual sales and cash flow forecast. The company expects a significant drop in earnings in the third quarter. The reasons are the more difficult market conditions in China and a slower than expected recovery in the USA.

Due to disappointing sales figures, Volvo will miss its forecast for 2026, the company announced on Friday. European business continues to be robust. However, given the increased uncertainty in the markets, Volvo does not want to publish a new short-term forecast.

The share temporarily lost 7.8 percent in early trading in Stockholm. It was the biggest daily loss since July. At that time, Volvo had given up its goal of selling more vehicles this year - also because of the weakness in China. Until recently, the group had relied on a recovery in the second half of the year, driven by demand in Europe and the USA. The stock has lost more than half of its value since the beginning of the year.

Just two weeks ago, outgoing CEO Håkan Samuelsson presented the company's new strategy. The group wants to increase profitability - among other things with regionally tailored models and closer cooperation with the majority shareholder Geely.

Among other things, the plan is to share works and components with partners. Volvo is under strong competitive pressure in China, has to cope with US tariffs and is facing subdued demand.

Separately, Volvo on Friday reported a 10.7 percent decline in third-quarter sales. Strong demand for all-electric cars was not enough to offset weakness in China and the sluggish recovery in the US.

Sales fell by more than 40 percent in China and by 14 percent in North and South America. In Europe and the other markets they increased slightly by two percent.

The company plans to present further planned measures on October 23rd together with the quarterly figures. Volvo is sticking to its longer-term goals: The group is aiming for a significantly positive cash flow and an operating margin of eight percent.