Swedish car manufacturer Volvo Cars has reported a decrease in quarterly sales during what its leadership described as a highly demanding operational climate. However, the firm indicated that it anticipates a business recovery during the final six months of the year.
Chief executive Hakan Samuelsson stated that the three months to June marked the completion of a highly volatile first half of 2026. The leader explained that the automotive sector in China experienced a general slowdown, which impacted the firm alongside its main competitors, while international unpredictability tied to the ongoing Middle East conflict intensified.
For the second quarter, the carmaker posted total revenues of 77.7 billion kronor, equivalent to about 8.05 billion US dollars. This figure represents a drop from the 93.5 billion kronor generated during the same period in the previous year. Overall vehicle deliveries slipped by six per cent, down to 171,500 units.
Net earnings reached 417 million kronor for the quarter, marking a clear turnaround from the net loss of 8.1 billion kronor reported during the second quarter of 2025. The prior year's figures had been significantly dragged down by an 11.4 billion kronor reduction in the recorded value of the company's electric vehicle lineup.
Samuelsson pointed out that the road ahead shows several encouraging updates. The manager highlighted that the United States car market is displaying signs of stabilisation after experiencing a drop in volumes for multiple months, registering clear expansion during both May and June. Corporate leadership expects this upward trajectory to persist.
Combined with expansion across the European market, Samuelsson stated that the manufacturer expects to deliver noticeably higher sales numbers during the closing half of the year compared to the initial six months.
The corporate leader also confirmed that the firm is successfully implementing its internal efficiency measures. These adjustments include a reduction in staffing levels of roughly 3,000 roles when compared to the first half of 2025. This workforce adjustment forms part of a larger 18 billion kronor cost-reduction initiative that Volvo Cars first introduced last year.
