Volvo Books $1.2 Billion Impairment Charge Over US Tariffs, EV Launch Delays

Volvo Cars announced a significant non-cash impairment charge of approximately $1.2 billion in the second quarter due to US tariffs and delays affecting its electric models, the ES90 sedan and the EX90 SUV. The company, controlled by China's Geely Holding, cited the inability to sell the ES90 profitably in the US because of a 25% import tariff and margin pressures in Europe. Additional factors contributing to the charge include previous launch delays and increased development costs for these models. This impairment will reduce Volvo's net income by about 9 billion Swedish kronor in the quarter. The firm is responding to a more regionalized global trade environment and plans to increase local production in the US to mitigate tariff impacts. Volvo's second-quarter results are expected to be published on July 17.