Sweden-based Volvo Cars reported a steep fall in second-quarter adjusted operating profit on Thursday and said demand remains under pressure as tariffs hits.
Its quarterly operating profit excluding items affecting comparability fell to 2.9-billion Swedish crowns (R5.32bn) from 8-billion (R14.65bn) a year ago.
"Demand remains soft and volatile, impacted by weakening consumer confidence and the introduction of additional tariffs, which continue to pose challenges for the automotive sector," the company said in its earnings report.
Its gross margin, a metric investors and analysts are looking at closely to assess the impact of the tariffs, fell to 13.5% compared to 18.2% in the first quarter, adjusted for one-offs it fell to 17.7%
Volvo Cars is the first European carmaker to report in what is expected to be a gloomy reporting season as weak demand for EVs and growing competition from China hits at the same time as US tariffs mount.
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