Q1 2025 Volvo Car AB Earnings Call Transcript
Key Points
- Volvo Car AB (VLVOF) has launched a SEK18 billion cost and cash action plan aimed at improving profitability and offsetting market headwinds.
- The company is focusing on electrification, with 43% of its vehicles being electrified, one of the highest among premium competitors.
- Volvo Car AB (VLVOF) is empowering regional structures to react faster to local market conditions, particularly in China and the Americas.
- The company maintains a strong liquidity position with SEK73 billion in total liquidity, including SEK47 billion in cash.
- Volvo Car AB (VLVOF) is planning to introduce new products, including the EX60 all-electric SUV in 2026, to strengthen its product lineup.
- Retail sales are down 6% year-on-year, with wholesale volumes dropping by 19%, impacting financial performance.
- Revenues have decreased by 12% to SEK83 billion, and EBIT has fallen to a disappointing 2.3%.
- The company faces significant pricing pressure due to increased competition from new electric vehicle players.
- US tariffs are expected to have a 1% to 2% negative impact on group EBIT, despite commercial mitigation efforts.
- Volvo Car AB (VLVOF) has withdrawn its 2026 ambitions due to market uncertainties, impacting its growth outlook.
Good morning and a very warm welcome to the presentation of Volvo Car's first quarter financial results for 2025, coming to you live from our headquarters in Gothenburg. My name is Ron. Those were of course images of the EX30 rolling off the production line in Ghent. We just started a few days ago.
This morning for the earnings call, we have our President and Chief Executive, HÃ¥kan Samuelsson. We have our Chief Financial Officer, Frederick Hansson. And at the top of this call, HÃ¥kan and Frederick will walk us through our performance, and thereafter we'll throw it open for a question and answer round. Exactly how you participate in the Q&A round, it should be quite familiar to all of you by now, but I'll still come back closer to the Q&A session. But for now, I'll leave this note to you.
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Thank you, Ron. So good morning to all of you. We will tell you today what has happened
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