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Volvo blames EU tariffs as it lowers its 2024 sales forecast

STOCKHOLM — Volvo Cars cut its full-year retail sales forecast on Thursday, blaming European tariffs on EVs made in China that will hit one of the Swedish automaker's key electric models until it shifts production to Belgium. While reporting better than expected second-quarter results that sent its shares up 6% in morning trade, Volvo lowered its forecast for sales growth this year to 12%-15%, down from 15%. "It's really driven by tariffs," CEO Jim Rowan told Reuters. "It's a short-term issue for us, but it is an issue and we're just going to have to deal with that." Rowan said that while Volvo still hoped for 15% growth, it was now providing a range given the uncertainty. "We wanted to put a floor on that for the markets to say we're still going to grow but there are some headwinds," he said. Earlier this month, the EU announced provisional tariffs of up to 37.6% on imports of EVs made in China, saying they benefited from unfair subsidies — an allegation Beijing rejects. Volvo is majority-owned by China's Geely and faces a 19.9% tariff on its Chinese-made fully-electric EX30. Rowan said the Swedish automaker faced a "minimum of six months" of tariffs until it moves EX30 production to Belgium, which is expected to start early next year. Volvo said the main ramp-up of EX30 production at its factory in Ghent was expected during the second half of 2025. Bernstein analysts said in a note that the new sales guidance was "sensible given todayÂ’s macroeconomic situation." Major automakers have seen slowing demand for EVs, driven in part by a lack of affordable models and the slow rollout of charging points. Meanwhile, U.S. and European automakers have reported strong sales of hybrids, and are rolling out more such models to meet demand. Volvo said it saw a "modest decline" in orders for fully electric models in the second quarter, but noted "demand for hybrid cars remains very strong". "We will continue to invest in this line-up and these cars form a solid bridge for our customers not yet ready to move to full electrification," Rowan told analysts in a conference call. Volvo produced 211,900 cars in the second quarter, more than it sold amid the decline in European demand for EVs. Its operating income, which includes its stake in loss-making Polestar, rose to 8 billion crowns ($758 million) from 5 billion crowns a year earlier. That topped the 6.7 billion crowns expected by analysts, LSEG data showed.

Hyundai Sonata PHEV may be a game (and mind) changer

If you really, really want to consume volts instead of fuel on your way to work, school or shopping, you currently have just three options: pure EV, hydrogen fuel cell, or plug-in hybrid EV. Much as we love them, we all know the disadvantages of BEVs: high prices due to high battery cost (even though subsidized by their makers), limited range and long recharges. Yes, I know: six-figure (giant-battery) Teslas can deliver a couple hundred miles and Supercharge to ~80 percent in 10 minutes. But few of us can afford one of those, Tesla's high-voltage chargers are hardly as plentiful as gas stations, and even 10 minutes is a meaningful chunk out of a busy day. Also, good luck finding a Tesla dealership to fix whatever goes wrong (other than downloadable software updates) when it inevitably does. There still aren't any. Even more expensive, still rare as honest politicians, and much more challenging to refuel are FCEVs. You can lease one from Honda or Hyundai, and maybe soon Toyota, provided you live in Southern California and have ample disposable income. But you'd best limit your driving to within 100 miles or so of the small (but growing) number of hydrogen fueling stations in that state if you don't want to complete your trip on the back of a flatbed. That leaves PHEVs as the only reasonably affordable, practical choice. Yes, you can operate a conventional parallel hybrid in EV mode...for a mile or so at creep-along speeds. But if your mission is getting to work, school or the mall (and maybe back) most days without burning any fuel – while basking in the security of having a range-extender in reserve when you need it – your choices are extended-range EVs. That means the Chevrolet Volt, Cadillac ELR or a BMW i3 with the optional range-extender engine, and plug-in parallel hybrids. Regular readers know that, except for their high prices, I'm partial to EREVs. They are series hybrids whose small, fuel-efficient engines don't even start (except in certain rare, extreme conditions) until their batteries are spent. That means you can drive 30-40 (Volt, ELR) or 70-80 miles (i3) without consuming a drop of fuel. And until now, I've been fairly skeptical of plug-in versions of conventional parallel hybrids. Why?

Volvo dealers pushing for V40 in America [w/poll]

Not too long ago, Volvo effectively replaced three models with one. Those were the C30, S40 and V50, and their replacement came in the form of the V40. While its predecessors were available (at some point, anyway) in North America, the V40 isn't. And that's something that Volvo's players in the US would like to change.
According to Automotive News, both Volvo Cars of North America and its dealers are pressing the factory to reverse its decision and prepare the V40 for an American assault on the likes of the Volkswagen Golf and Audi A3. It's a game they won before with the current V60, which hasn't been available here, but is set to make the transatlantic voyage come the start of the new year.
This time, though, Volvo Cars of North America may have a bigger fight on its hands, because the V40 wasn't designed to meet US regulations. Getting it up to spec, then, may be a bigger challenge than it's worth. But if the American importer and dealer network makes its voice heard, the V40's replacement could be designed with US regulations in mind.