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    Home > Headlines > Volvo Cars books $1 billion impairment charge due to tariffs, launch delays
    Headlines

    Volvo Cars books $1 billion impairment charge due to tariffs, launch delays

    Published by Global Banking & Finance Review®

    Posted on July 14, 2025

    2 min read

    Last updated: January 22, 2026

    Volvo Cars books $1 billion impairment charge due to tariffs, launch delays - Headlines news and analysis from Global Banking & Finance Review
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    Tags:import and exportfinancial communitycorporate strategyfinancial reportinginternational financial institution

    Quick Summary

    Volvo Cars faces a $1.2 billion impairment due to tariffs and delays affecting ES90 and EX90 models, impacting profitability.

    Volvo Cars Faces $1.2 Billion Impairment Charge Due to Tariffs

    STOCKHOLM (Reuters) -Sweden-based Volvo Cars is booking a impairment charge of 11.4 billion crowns ($1.2 billion) in the second quarter related to its ES90 and upcoming EX90 models, due to tariffs and launch delays, it said on Monday.

    The group, which is controlled by China's Geely Holding, said it is currently unable to sell its Volvo ES90, which is built in China, profitably in the United States due to import tariffs, while profit margins for the same model are also under pressure in Europe for the same reason.

    "The charge primarily reflects adjustments in expected volumes and planned lifecycle profitability associated with the platform for the EX90 and ES90 cars," it said in a statement.

    The impairment charge also reflects significant launch delays in the past and subsequent additional development costs, it said.

    Out of the total amount, 4.0 billion crowns is estimated to impact cost of sales and the majority of the remaining amount affects the R&D line in the financial reporting.

    Volvo Cars, which is due to publish second-quarter results on July 17, said the effect on net income in the period will be 9.0 billion crowns.

    ($1 = 9.6103 Swedish crowns)

    (Reporting by Anna Ringstrom and Marie Mannes in Stockholm, editing by Essi Lehto and Tomasz Janowski)

    Key Takeaways

    • •Volvo Cars faces a $1.2 billion impairment charge.
    • •Tariffs impact profitability of ES90 in the US and Europe.
    • •Launch delays add to development costs.
    • •Geely Holding controls Volvo Cars.
    • •Second-quarter results to be published on July 17.

    Frequently Asked Questions about Volvo Cars books $1 billion impairment charge due to tariffs, launch delays

    1What is the amount of the impairment charge booked by Volvo Cars?

    Volvo Cars is booking an impairment charge of 11.4 billion crowns, approximately $1.2 billion, in the second quarter.

    2What factors contributed to the impairment charge?

    The charge is primarily due to import tariffs affecting the ES90 model and significant launch delays for the EX90 model.

    3How will the impairment charge affect Volvo's financial reporting?

    Out of the total impairment charge, 4.0 billion crowns will impact the cost of sales, while most of the remaining amount will affect the R&D line in financial reporting.

    4When is Volvo Cars expected to publish its second-quarter results?

    Volvo Cars is scheduled to publish its second-quarter results on July 17.

    5What is the estimated impact on net income for Volvo Cars?

    The impairment charge is expected to affect net income by 9.0 billion crowns during the period.

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