Volvo says Q2 profitability will be affected by continued headwinds

The company said, “In a continued challenging market, Volvo (VLVLY) Cars expects full-year volumes to improve with a strong product offer supported by the EX60. Q2 profitability will be affected by continued headwinds and the EX60 production start and ramp-up. However, the ambition for full year volume growth and cash flow remains. While Europe is solid, the US and China markets remain challenging. US consumer confidence is under significant pressure and the market is taking longer to recover from the removal of incentives, with sales of electrified cars declining significantly. In China, Volvo Cars faces tough competition on pricing and new product launches by competitors. However, the company defended its overall market share in China and improved its PHEV share in Q1. The new XC70 long-range PHEV demonstrates the strength of its second-generation plug-ins, helped by a new front-wheel drive variant.”