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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.

Volvo Cars to leave ACEA car lobby group over climate goals

LONDON — Volvo Cars said on Friday it will leave the European Automobile Manufacturers Association (ACEA) by the end of 2022, citing differences between its zero-emission strategy and that of Europe's car lobby group. The Swedish carmaker has committed to having a fully-electric car range by 2030, well ahead of the European Union's proposal for an effective ban on fossil-fuel cars as of 2035. Volvo has been a proponent of moving more swiftly to zero-emission transport, but after the EU parliament voted in June in favour of the 2035 deadline the ACEA said that "any long-term regulation going beyond this decade is premature at this early stage." In a statement Volvo said "we have concluded that Volvo Cars' sustainability strategy and ambitions are not fully aligned with ACEAÂ’s positioning and way of working at this stage." "We therefore believe it is better to take a different path for now," the carmaker added. "What we do as a sector will play a major role in deciding whether the world has a fighting chance to curb climate change." The news comes less than a month after world No. 4 carmaker Stellantis said it would leave the ACEA by the end of 2022 as part of a new approach to addressing issues and challenges of future mobility, including a shift away from traditional lobbying activity. The European Automobile Manufacturers Association, widely known by its French acronym ACEA, has been the industry's main lobbying group since its creation in 1991, uniting Europe's 16 major car, truck, van and bus makers.   Government/Legal Green Volvo Emissions Green Automakers Electric

2025 Volvo EX30 First Drive Review: Little big time

BARCELONA, Spain — Priced from $36,245, including $1,295 for destination, the new EX30 is VolvoÂ’s least-expensive car. But make no mistake, thereÂ’s nothing cheap about this subcompact electric crossover. From its solid road manners to its clever use of interior textiles, this little cutie is comfortable, competent and bursting with charm. We'll get the EX30 in Single Motor Extended Range and Twin Motor Performance variants when it goes on sale in the U.S. early next year. Both models are powered by a 69-kilowatt-hour battery pack – 64 kWh of which is usable – that can be replenished at a maximum charging rate of 153 kW. Volvo says youÂ’ll only need 27 minutes to take the EX30 from a 10% to 80% state of charge, but thatÂ’s assuming the battery is properly preconditioned, the charger youÂ’re plugged into actually works correctly, the planets are all aligned, etc. The Single MotorÂ’s, um, single motor is mounted to the rear axle, producing 268 horsepower and 253 pound-feet of torque. ThisÂ’ll get the EX30 to 60 mph in a perfectly respectable 5.1 seconds, and Volvo estimates a 275-mile driving range for this configuration – though not if youÂ’re testing that aforementioned launch time on the regular, of course. The Twin Motor Performance has the same rear drive unit, but adds a second motor to the EX30Â’s front axle for a total output of 422 hp and 400 lb-ft of torque. ThatÂ’s a whole heck of a lot of power – even for a 4,140-pound crossover – and my goodness, does this EX30 scoot. Put the EX30 Twin Motor into its Performance AWD setting, stomp the throttle and youÂ’ll hit 60 mph in 3.4 seconds. That makes the EX30 VolvoÂ’s quickest accelerating production car ever. Nifty as that is, however, after a day of driving the EX30 on winding Spanish country roads and darting through traffic in BarcelonaÂ’s busy city center, I think the Single Motor is the way to go. Remember, even the pokiest EVs still feel quick thanks to instant electric torque, and at no point does the Single Motor EX30 ever feel like it canÂ’t get out of its own way. Beyond that, though, the EX30 Single Motor is simply more fun to drive. At 3,858 pounds, the rear-drive EX30 is 282 pounds lighter than the AWD version, and all that weight comes off the front end. This makes VolvoÂ’s tiny EV feel more playful and agile while cornering, especially with the well-weighted steering – not to mention the fun-to-handle squircle wheel.