Volvo Car's CEO, Håkan Samuelsson, has stated that the company has abandoned its full-year sales growth target due to a more severe-than-anticipated downturn in the Chinese market. However, he anticipates a "significantly improved" performance in the second half of the year, driven by cost reductions and the launch of new models.

The CEO indicated that Volvo has already cut costs by 8 billion Swedish kronor in the first half of the year, surpassing its full-year target of 5 billion kronor.

While the company does not plan further layoffs, it will maintain strict control over hiring and expenditures on external consultants and purchased services.

Volvo is open to contract manufacturing at its Ghent plant, including the potential assembly of Geely Automobile Holdings Ltd. brand vehicles, although there are no concrete plans at present. Any such arrangements would need to comply with regulatory requirements.

Volvo aims to deepen its collaboration with Geely Automobile Holdings Ltd. on future platforms, hardware components, and models specifically designed for the Chinese market. The company finds it increasingly difficult to develop competitive products for China solely from its Gothenburg-based operations.

Looking ahead, Samuelsson noted that the primary risks remain weak demand, geopolitical uncertainty, and any escalation of tensions in the Middle East. He added, however, that he is seeing signs of recovery in the U.S. market.

He also emphasized that over 50% of Volvo's sales in Europe are electric vehicles, describing this as a significant milestone that positions the company for improved performance in the latter half of the year.

The electric vehicle market continues to show strong growth momentum, particularly in Europe.