The Swedish car manufacturer Volvo Cars, owned by China Geely, announced Monday to approve its accounts a depreciation charge of 11.4 billion crowns, one billion euros, due to customs tasks in the United States and the delay in the launch of a model.
“Due to import rights,” Volvo Cars “” cannot sell the Volvo ES90 (an electric sedan, the editor’s note) profitably in the United States and the margins in the ES90 are also under pressure in Europe, “the group said in a statement.
The Swedish car manufacturer had warned in April that it should adapt to “a more regionalized world”, in reference to the current commercial war, especially between the United States and China.
In the US territory, Volvo Cars faces the increase in customs tasks in cars made of the United States subject to a 25% surcharge since the beginning of April (15% for Mexico).
Elimination of 3,000 jobs
The depreciation announced by Volvo Cars is also explained by the “reduced profitability” of its great ex90 SUV due to “great launch delays and additional development costs that have resulted,” according to the group.
The impact of this depreciation will be 9 billion crowns on the net profit of the company in the second quarter, specifies the Volvo cars. Your second quarter accounts will be published on July 17.
At the beginning of April, the general director of the Håkan Samuelsson Group announced that the number of cars made in the United States would increase and that it would certainly transfer the production of a new model in its American factory in South Carolina.
It inaugurated at the end of April in its Ghent factory, in Belgium, a new production line dedicated to the small ex 30 Electric SUV.
The group had announced at the end of May
Source: BFM TV
