Swedish automaker Volvo Cars reported a decline in performance in the second quarter of 2026, amid a slowdown in the Chinese market and geopolitical uncertainties related to the conflict in the Middle East. The group generated revenue of €7,04 billion between April and June, compared to €8,47 billion a year earlier. Sales also decreased by 6%, with 171.500 vehicles sold during the period.
Net profit, however, came in positive territory at 37,78 million euros, whereas the group had recorded a loss of 733,80 million euros in the second quarter of 2025, mainly due to a significant depreciation in the value of its electric vehicles.
Volvo anticipates an improvement in the second half
Despite these declining results, CEO Håkan Samuelsson remains confident about the remainder of the year. He points out that the US market is showing signs of recovery, with two consecutive months of sales growth in May and June. Volvo Cars also anticipates continued growth in Europe, which should lead to significantly higher sales in the second half of the year.
The manufacturer is simultaneously continuing its cost-cutting program announced last year. Volvo Cars indicates that it has reduced its workforce by approximately 3.000 positions compared to the first half of 2025, as part of a €1,63 billion cost reduction plan aimed at sustainably improving its profitability.
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