Volvo Cars reports sharp profit drop in Q4 due to tariffs, currency, and weak demand in China

Volvo Cars shares plummeted, heading for their worst trading day ever after a significant drop in fourth-quarter profit. The automaker cited U.S. tariffs, currency fluctuations, and weak demand, particularly in China, for the profit decline. Operating income fell 68% year-over-year. CEO Hakan Samuelsson noted challenging market conditions, including reduced EV incentives, but highlighted internal cost reductions and positive cash flow.