Volvo Cars swings into loss on electric vehicles, tariffs

Stockholm: Volvo Cars announced on Thursday it had swung into loss in the second quarter, after it took an impairment charge for its electric cars, bo...

Stockholm: Volvo Cars announced on Thursday it had swung into loss in the second quarter, after it took an impairment charge for its electric cars, booked restructuring charges and dealt with a slower, tariff-troubled market.

The net loss of 8.1 billion kronor ($830 million) was due to a 11.4-billion-kronor writedown in the value of its EX90 electric SUV and ES90 electric sedan due to production delays, higher development costs than planned and now US tariffs making sales there unprofitable.

"Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition," chief executive Hakan Samuelsson said in the quarterly earnings report.

The Sweden-based manufacturer owned by China's Geely also took a 1.4-billion-kronor restructuring charge, having announced 3,000 job cuts in May.

The group had booked a net profit of 5.7 billion kronor in the same quarter last year.