From Yahoo Finance: 2025-05-30 06:53:00

S&P downgrades Volvo Cars outlook to “negative” from “stable” due to U.S. tariffs and Chinese competition impacting growth prospects. The automaker, majority-owned by China’s Geely, recently withdrew earnings guidance, plans to cut costs by laying off 3,000 white-collar workers. Volvo’s exposure to U.S. tariffs and waning Chinese market contribute to outlook. Profitability and cash generation expected to decline in 2025-2026, despite cost reduction efforts. U.S. represents 16% of sales, China 20%. Volvo relies on U.S. imports, vulnerable to tariffs. Proposed 2027 U.S. ban on Chinese-controlled automakers also impacts outlook. Recent trade turmoil continues with court temporarily reinstating tariffs.



Read more at Yahoo Finance: S&P lowers outlook on Volvo Cars rating citing US tariffs, competition in China