Volvo Cars Withdraws Sales Guidance as Shares Hit Record Low

Volvo Cars announced Friday that it will not meet its previous full-year sales volume and cash flow guidance. The company reported that third-quarter sales fell 11% year-over-year to 141,609 units, contributing to a stock price decline of approximately 50% this year. Shares reached a record low of 14.60 crowns following the announcement.

The company cited high development costs, tariffs, and weakening demand for electric vehicles as primary drivers of the struggle. Management attributed the sales decline to a severe market downturn in China and a slower-than-expected recovery in the United States premium segment, though it noted that the European market remains resilient.

To address these challenges, the majority-owned subsidiary of Geely Holding previously announced that Klaus Zellmer will take over as chief executive within a year to lead the company through the competitive market environment.