Sweden-based Volvo Car Corporation announced on Thursday that its operating profit excluding items affecting comparability fell in the fourth quarter. The company stated that its turnaround plan is progressing as planned, although the external environment remains challenging.

Due to trade tariffs, weak demand, pricing pressure, and the removal of electric vehicle subsidies in the United States, the company's adjusted operating profit for the fourth quarter dropped to 1.8 billion Swedish kronor (approximately $199.9 million), down from 5.6 billion kronor in the same period last year.