Volvo Swings to Q3 Loss, Shares Plunge 27% as It Cuts 2,500 Jobs
VLVCY is trading near its 52-week low of $2.05 (2.4% above the low).
Summary
Volvo posted a Q3 loss of SEK 1.63 per share versus a SEK 1.75 profit a year ago, with total sales down 22.6% and EV sales down 53%. The EBIT margin fell to negative 8.4%, a 1,580 basis point compression, as China sales dropped 50% and U.S. tariffs and lost EV incentives weighed. Management is reinforcing its turnaround: 2,500 job cuts (6% of the workforce, mostly in Sweden), consolidating Shanghai offices, splitting the U.S. market into four regions, and fast-tracking long-range plug-in hybrid XC90 and XC60 production, targeting nearly 25% lower spending than 2024 by end-2027. Results also took a SEK 1.1B CAFE revaluation charge and SEK 0.9B tied to Polestar's Q2 losses; Polestar (PSNY) is the affiliated EV maker whose losses flow through Volvo's numbers. Shares opened down more than 27% and are down nearly 70% this year, trading near a 52-week low.
At the time of this announcement, VLVCY was trading at $2.10 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $2.05 to $7.66. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.