An increasingly challenging market situation and deteriorating near term market outlook has resulted in lower-than-expected sales and a weaker full year outlook for Volvo Cars. Therefore, Volvo Cars will not fulfill the previous full year 2026 outlook statements on volume and cash flow.
The decline is primarily driven by further deteriorating market conditions in China and slower than expected recovery in the US, while Europe remains resilient.
These developments will also have a significant negative impact third quarter core earnings and cash flow, beyond the previously communicated headwinds on raw materials, FX and increased amortisation and depreciation levels.
As a result of the increased market uncertainty, Volvo Cars has also taken the decision not to provide any updated short-term forward-looking statement.
Volvo Cars is taking further decisive actions to improve and accelerate execution of our strategic roadmap in this challenging environment and will share more details when it reports its third quarter financial results on October 23.
The removal of short-term forward-looking statements has no impact on the long-term strategic ambitions laid out during the recently held Strategy Update of reaching strong positive cash flows and structurally building a company delivering 8 % EBIT margin.
This disclosure contains information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 02-10-2026 08:35 CET.
For further information please contact:
Volvo Cars Media Relations
+46 31-59 65 25
media@volvocars.com
Volvo Cars Investor Relations
+46 31-793 94 00
investors@volvocars.com
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker "VOLCAR B".
"For life. To provide freedom to move in a personal, sustainable and safe way." This purpose is reflected in Volvo Cars' ambition to become a fully electric car maker and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to achieve net-zero greenhouse gas emissions by 2040.
In 2025, Volvo Cars sold over 710 thousand cars, with an electrified share of 46%.
Volvo Cars on average employed 42,600 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg and Shanghai (China).
