Volvo Cars präsentiert die Finanzergebnisse für das vierte Quartal sowie das Gesamtjahr 2025. Präsident und CEO Håkan Samuelsson und CFO Fredrik Hansson ordnen die Geschäftsentwicklung ein und beantworten Fragen im anschließenden Q&A.
😇 Dein Abo hilft uns: https://tublo.eu/abonnieren
✅ Source: Volvo
➡️ Mehr Infos: https://www.tuningblog.eu/tipps_tuev-dekra-u-co/volvo-cars-ergebnisse-770705/
Am 5. Februar 2026 veröffentlichte Volvo Cars die vollständigen Zahlen für Q4 2025 und das Gesamtjahr 2025. In der Präsentation geben CEO Håkan Samuelsson und CFO Fredrik Hansson einen detaillierten Überblick über Umsatz, Ergebnisentwicklung, operative Performance und strategische Weichenstellungen.
Neben der Einordnung der wirtschaftlichen Kennzahlen stehen auch Markttrends, Elektrifizierungsstrategie sowie der Ausblick auf das laufende Geschäftsjahr im Fokus. Die anschließende Fragerunde liefert zusätzliche Einblicke in Prioritäten, Investitionen und die Positionierung der Marke im globalen Wettbewerbsumfeld.
#VolvoCars #Volvo #Quartalszahlen #Geschäftszahlen #Automobilindustrie #Finanzergebnisse #Jahresabschluss #tuningblog - das Magazin für Auto-Tuning und Mobilität!
😇 Dein Abo hilft uns: https://tublo.eu/abonnieren
✅ Source: Volvo
➡️ Mehr Infos: https://www.tuningblog.eu/tipps_tuev-dekra-u-co/volvo-cars-ergebnisse-770705/
Am 5. Februar 2026 veröffentlichte Volvo Cars die vollständigen Zahlen für Q4 2025 und das Gesamtjahr 2025. In der Präsentation geben CEO Håkan Samuelsson und CFO Fredrik Hansson einen detaillierten Überblick über Umsatz, Ergebnisentwicklung, operative Performance und strategische Weichenstellungen.
Neben der Einordnung der wirtschaftlichen Kennzahlen stehen auch Markttrends, Elektrifizierungsstrategie sowie der Ausblick auf das laufende Geschäftsjahr im Fokus. Die anschließende Fragerunde liefert zusätzliche Einblicke in Prioritäten, Investitionen und die Positionierung der Marke im globalen Wettbewerbsumfeld.
#VolvoCars #Volvo #Quartalszahlen #Geschäftszahlen #Automobilindustrie #Finanzergebnisse #Jahresabschluss #tuningblog - das Magazin für Auto-Tuning und Mobilität!
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MotorTranskript
00:00:01Finally, finally we get to show you the EX60.
00:00:06And this, this is our game changer.
00:00:08The most technologically advanced car we have ever built.
00:00:12And one that marks the end of range anxiety.
00:00:16Today is the best car we have ever made.
00:00:19Tomorrow it will be even better.
00:00:36Good morning, it's been two weeks since we revealed the EX60 to the world and the verdict is loud and
00:00:42emphatic.
00:00:43It is the very best in class, a car that has been designed, engineered and manufactured right here in Gothenburg,
00:00:50where we are coming to you from this morning.
00:00:52A warm welcome to our fourth quarter financial results.
00:00:55My name is Ron. And as always, I'm joined by our president and chief executive, Hawkan Samuelson, and our CFO,
00:01:02Frederick Hansen.
00:01:03At the top of this earnings call, Hawkan and Frederick will walk us through our performance during this period.
00:01:09And thereafter, we'll throw it open for a question and answer round.
00:01:13You can either type in your questions, then I'm going to read them out for you, or simply use the
00:01:19phone lines to call in.
00:01:20But I'll come back with more information closer to the Q&A round.
00:01:23But for now, I hand it to you, Hawkan. Good morning.
00:01:26Good morning.
00:01:29And welcome also from me to this quarterly presentation.
00:01:34So if we go back a bit to the year where we started the year, we had a very challenging
00:01:39starting point.
00:01:40We had the sales dropping, we have low profitability and a negative cash flow.
00:01:46So we set out the program really to reset the company and put it on track.
00:01:52And we identified three areas which we've come back to a bit.
00:01:57And the first one was then profitability.
00:02:00We need to fast bring the company on the track to profitable growth.
00:02:04We defined a 18 billion package.
00:02:09It was seen as very challenging.
00:02:10We thought that internally as well.
00:02:13And we can see now that that has really been done faster than we thought also internally.
00:02:20So we had the good cost saving of indirect cost and variable cost of around 8 billion, which we have
00:02:28done.
00:02:29We have done cost actions to improve our cash flow.
00:02:32We also introduced a more leaner organization.
00:02:38We reduced the headcount with around 3,000 positions, which we also have done with very little disturbances and frustration
00:02:50from people.
00:02:51It has worked very good.
00:02:53And we also have brought down our investments to an affordable level.
00:02:57So I think even though this not have brought the bottom line that we would see internally, we have had
00:03:03really improvements faster than we thought.
00:03:07The second area which we set out as very important was to bring back the company on the direction to
00:03:13electrification.
00:03:16And there, of course, we need new products.
00:03:20And very importantly in China, we launched the first, second generation of plug-in hybrids because this company should be
00:03:29ready to be all electric 2030.
00:03:31But we are also realistic for those regions and customers still not ready.
00:03:36We need a bridge solution, which we call the second generation plug-in hybrids.
00:03:42Really an electric car, but with a backup engine to get the longer range.
00:03:47That has been launched in China.
00:03:50It's a success on the market.
00:03:52And then very importantly, we have brought out the Spa 3 to launch that.
00:03:58You saw in the video here starting a very important car because it shows the future of Volvo as an
00:04:05all-electric, absolutely top player in the all-electric premium segment.
00:04:11And we have nothing to shy away from with this car.
00:04:14We are absolutely leading in performance with that car.
00:04:19So it will be a game changer for Volvo.
00:04:21And it will also increase the addressable market.
00:04:25And last but not least in electrification.
00:04:27We now have the 90 segment is really complete out with customers.
00:04:32We have the SUV EX90, but we also have a sedan, the ES90, both selling and both are really Volvo
00:04:40flagships.
00:04:42And third area we defined then in the beginning of the year is we need to be more regional in
00:04:48our business.
00:04:48And this is really the necessity for us to maintain a strong global brand.
00:04:55Then we need to be regional in our tactical approach to the markets.
00:05:00China is the first where you can see effects from this.
00:05:04I think we have now, even though on a very tough market where our European colleagues are really struggling, we
00:05:12have increased our market share in the premium segment.
00:05:15And we have a more solid volume is kept on this level.
00:05:22And now we also are introducing the XC70, which is a driver for growth.
00:05:28In the US, we will localize more cars.
00:05:33XC60 will be the first one, the best seller in the US.
00:05:36But we also said there will be a next generation hybrid coming there also.
00:05:41And this is, of course, to build where you sell, avoid tariffs, but also really the best way to avoid
00:05:48the currency fluctuation, which is now a problem for us in the US.
00:05:52We need to have a natural hedging and that you can do with more local production.
00:05:59And last but not least, Europe.
00:06:01We have ramped up the X30 and now it's built in Ghent.
00:06:05It's not imported from China.
00:06:07And now we will boost the volumes of that car in the next step.
00:06:12So a year of a strategic reset.
00:06:15And if you look now into the more financial figures, what did we deliver during the year?
00:06:21Volume was in the quarter down, also down even more for the full year.
00:06:27So at least we have a lower trend in the reduction.
00:06:34And more importantly, the best sales is up 12%.
00:06:38I think that was also one of the ambition we have with the year.
00:06:42Pricing pressure increased, of course.
00:06:45We have lost some incentives in the US for EV cars, also in China.
00:06:51And the EBIT was also down to 2%, which of course is not the level where we want to be,
00:07:00but we have some external factors, tariffs and exchange rate on top of a very tough price competition, of course.
00:07:10What I think is positive is that we return to positive cash flow.
00:07:15That was really internally the number one target for the company.
00:07:20We need to stop earning money.
00:07:23We need to come to positive cash flow.
00:07:25And that we did for the full year.
00:07:28We came back to 2.5% cash flow for the year and very solid in the last quarter with
00:07:368.8%.
00:07:38And altogether we had an EBIT margin of 3.5% for the year.
00:07:43So, of course, not where we want to be, but if you look at this really severe headwind on the
00:07:49market external factor, I think it's still a reasonable result.
00:07:55And I think it's a good base to build from now when we enter into 2026.
00:08:00If you look into electrification, I think it's also good signals and showing that we are on the right way.
00:08:11The percentage of electrified cars, up to 46%, close to half of our cars are now chargeable.
00:08:18I think that shows we are on the right way.
00:08:21And very promising for the future.
00:08:24With the EX60, we are increasing the addressable market segment with 200%.
00:08:31And that's, of course, with a very strong game-changing technology in that car.
00:08:37It's a good driver for future growth.
00:08:40So, if you look into the EX60, very successful launch.
00:08:47This car has an all-new, no-compromise architecture for an all-electric cars.
00:08:55Introducing some really game-changing technologies.
00:08:59Mega-casting aluminum part in the ear, casted part, replacing hundreds of sheet metal parts.
00:09:09It has sell to both the technology.
00:09:12I think it's the first one in this class in the market that does that.
00:09:16Lower weights and increases the range.
00:09:20And also, for this segment, first car with the central compute, which we call Hugin Core.
00:09:31And that is a carryover from our Spa 2 cars.
00:09:35So, now we have the same software pack for all our electric cars.
00:09:40Which I think is a really important thing if we want to come up with quality and have a very
00:09:47rapid development of new features.
00:09:50Production starts in April.
00:09:52Everything is on track.
00:09:53And the first cars will reach customers in June.
00:10:00In the summer, I should say.
00:10:03So, with that, thank you.
00:10:06And I leave it to you, Fredrik, to go into the financials.
00:10:10Thank you, Håkan.
00:10:16So, summarizing Q4, I guess it was strong cash flow in a challenging quarter is the headline, which I think
00:10:24is very true.
00:10:25Retail sales were down 3%.
00:10:28That in the market, I was actually down even more.
00:10:32Our wholesale was down a full 8%.
00:10:34And that's really due to last year's push, which was quite unprecedented.
00:10:39We did a big one-off inventory reduction.
00:10:42And since then, we've kept our car inventory on much more controlled levels.
00:10:48So, that was more of a non-recurring thing, which happened last year.
00:10:53This translates to lower revenue, of course, with lower wholesales.
00:10:57But revenue was even more impacted by a strong currency in the sick.
00:11:03In terms of profit, it's not unexpected, but it is a disappointing 2%.
00:11:08Q4 is typically a tougher margin quarter.
00:11:11But as previously indicated, we also foresaw a challenging market, which we now saw.
00:11:18And we have quite significant effects, both from FX and from tariffs.
00:11:23On cash, we are very proud of our result.
00:11:27And we have prioritized this.
00:11:28Yes, last year was stronger, but that was due to the one-off inventory reduction,
00:11:33which was basically 18 billion of reduction.
00:11:37And we've kept our inventory lows in, so we couldn't repeat that this year.
00:11:41This year, instead, we see the cost and cash action plan really kicking in.
00:11:45This cash of 9 billion does include 2 billion of the last tranche of our Lincoln co-sales.
00:11:51But even if you exclude that, it is a very strong performance.
00:11:56If we turn to revenue and focusing on revenues excluding contract manufacturing,
00:12:02we were at 109 billion last year.
00:12:05Wholesale volumes being lowered naturally takes that down.
00:12:09We see a hit from sales mix and pricing as well.
00:12:12And then the biggest hit is really from FX and the very strong SEC,
00:12:16which has a negative impact on our revenues.
00:12:19All in all, this takes us to 92 billion in the quarter and 94 if we include the contract manufacturing.
00:12:28For EBIT, we started last year at 3.4%, also then on the back of a somewhat suppressed gross margin,
00:12:36which we often have in Q4.
00:12:39Last year, we had a one-off item impacting comparability linked to NOVO.
00:12:44When we consolidated that, that negative effect is not hitting back this year in the 1.8 billion.
00:12:52If we look at this year then, the volumes which are lower translates, of course, into a lower EBIT.
00:12:58We have a significantly lower sales mix and pricing coming from overall challenging markets across region.
00:13:05We have 45W consumer incentive uncertainties and backlashes in the US.
00:13:12In Europe, we've also repositioned the EX30 a bit on a lower price point.
00:13:16But that is also on the back of the lower cost that we have when we now have Europe for
00:13:21Europe production.
00:13:24FX year on year is negative, 1 billion.
00:13:28In Q4, if you look at the dollar, which is the real standout currency, it's a 13% weakening year
00:13:34on year.
00:13:35And more than some of the other currencies.
00:13:38That said, if we look at the underlying flows, that's largely covered by the financial hedges we have.
00:13:44But these are quite large balance sheet revaluation effects we see here.
00:13:50On other, that is a positive.
00:13:52And it's a positive despite that it's significantly pushed down by negative effects from tariffs.
00:13:57These were also higher in Q4, in part due to higher US sales.
00:14:03Importantly, this is being mitigated by our cost actions.
00:14:06So, all in all, this leaves us with a 2% EBIT or 1.9 billion.
00:14:14Turning to cash, we see a strong cash flow from the cash actions we have.
00:14:20And this has been our priority.
00:14:23We start the quarter with 51 billion in cash.
00:14:268 billion contributed from EBTA.
00:14:29And then a strong 10 billion from networking capital.
00:14:33Both actually being able to squeeze out another 3.5 billion in terms of inventory from an already low level.
00:14:40But also improvements in payables and receivables.
00:14:44Investments takes it down 7 billion.
00:14:46That also includes a positive effect of 2 billion.
00:14:49So, the net number is 9 billion if you exclude the Lincoln Co. payment.
00:14:57All in all, we end with a very strong liquidity.
00:15:01So, 58 billion in cash, 81 billion in total liquidity as a year-end position.
00:15:08Very quickly on the full year, I think we have a similar story on top line.
00:15:13Retail sales is down, wholesales is down, and that translates to lower revenue.
00:15:18On EBIT, it is a similar story of FX, of tariffs, of pricing pressure, but also very much counterweighted by
00:15:27the successful delivery of the cost and cash action program.
00:15:31And on cash, the Q4 strong cash flow means we had a very strong ending of the year.
00:15:37So, we are generating cash on a full year basis, and we are generating more cash than we did last
00:15:42year.
00:15:43And this is really a result of the cost and cash action plan.
00:15:50Talking about the cost and cash action plan, we launched this program in Q1 with the intention to save 18
00:15:56billion in 2026 versus a 2024 baseline.
00:16:01So, basically, a 20-month program, if you will.
00:16:05We have now achieved this one year earlier.
00:16:08And this is a great testament to really controlling what we can in an uncertain environment.
00:16:14With laser focus, with dedicated follow-ups, with a lot of ideation, with a mindset shift across our company, we
00:16:23can achieve a lot in a very short time.
00:16:25And that is also why we want to build on that momentum as we go into this year.
00:16:31We are now stretching the bow here and taking further actions.
00:16:35If we look at variable cost and indirect spend, we see a great momentum and we see more opportunities in
00:16:41the programs we are already running.
00:16:42So, we are adding 5 billion bottom line impact targeted for 2026, which means that versus the original baseline, we
00:16:51will now reduce cost by 13 billion in 2026 versus 2024.
00:16:57Again, controlling what we can in an uncertain near-term market.
00:17:02On capex and working capital, we talked about this in the strategic update we had in November.
00:17:08And we are now moving down to more affordable levels, which goes well beyond this 18 billion program.
00:17:16And this is a recap of what we said in November.
00:17:21But we will now, in 2026, move down to affordable levels of investments.
00:17:26And this is really enabled by finalizing a lot of the one-off infrastructure investments like Kossetscher, like Megacosting, like
00:17:34Seltobody.
00:17:36It's about moving towards structurally lower investments in software, benefiting from the fact that we now, in all electrified cars
00:17:44coming, have the same Hugin Core software stack, which means that we can create better quality, better features at lower
00:17:53cost.
00:17:55And lastly, access to high-tech, low-cost China for China technology through Geely.
00:18:02That said, 26 will not be linear.
00:18:05So, we have quite high investments plan in the first half.
00:18:09We've finalized large stages of the Kossetscher plants, which we need to pay for.
00:18:13And we are also launching the EX60.
00:18:19Lifting our eyes a bit, we also want to remind you of our long-term strategy for value creation, which
00:18:25clearly remains.
00:18:27We communicated this in November.
00:18:28We are building a company with above 8% EBIT and strong cash flow generation.
00:18:33And this turnaround is on track.
00:18:35The near-term market is challenging, but we are executing towards this path.
00:18:42And on the highest level, we said we're going to reach this by doing four things.
00:18:45One is to reach affordable investments.
00:18:48And there we are clearly on track.
00:18:51Second was fixed cost discipline.
00:18:53There we are delivering, and we are now aiming even higher.
00:18:56And we intend to make this a structural culture shift for the long run.
00:19:03The third was really Geely synergies and variable cost reductions.
00:19:06And there we've seen the first winds, but there's much, much more to come.
00:19:10We're only scratching the surface.
00:19:12And lastly, it's about electrified growth.
00:19:14And here we are laying the foundation with the best-in-class EX60 and a lot more to come.
00:19:22But as I stated before, these are long-term building blocks.
00:19:25So, Håkan, do you want to summarize and share a bit on 26?
00:19:31Yeah, what could we say about the next year?
00:19:34And of course, we are working with the things you talked about, Fredrik.
00:19:41So, we will see a continued cost and cash actions.
00:19:46I mean, the 18 billion program very successfully encouraged us to set up a new program for this year
00:19:53to reduce our costs with another 5 billion.
00:19:57I think that is something where we really see that we will be able to do.
00:20:03We can control it ourselves.
00:20:05We will also bring down our investments to an affordable level.
00:20:10That is also something we can control and know that will happen.
00:20:16We can also know that we will increase the addressable markets for electric cars.
00:20:23In the whole mid-size segment, SUVs for mid-size segment, we have lacked a car.
00:20:30And now with the EX60, we have absolutely the best car on the market for that segment.
00:20:37And we see also huge interest for this market segment also, while there are other attractive competitors also going into
00:20:45that segment.
00:20:46So, I think we will see a boost of interest for electric cars coming here during this year.
00:20:52And we are really well positioned to meet that.
00:20:54We will also, for the full year, return to volume growth, utilizing this momentum we see now on the market
00:21:02and better electric cars.
00:21:05So, for the full year, we will be back to growth.
00:21:08And for the full year also, with the discipline in investment, discipline in working capital, we will also see that
00:21:17we will get a clearly better cash flow than what we reached in 2025.
00:21:25So, that is what we can say about the years, I think, to summarize.
00:21:31A reasonable result for 2025, looking into the very challenging environment, but also a foundation really now to accelerate and
00:21:41improve in 2026.
00:21:44So, with that, I think, thank you for listening.
00:21:47And then we go over to question and answers.
00:21:50And I give it to you, Ron, to lead us here.
00:21:53Thank you very much, Hakan and Frederik.
00:21:54So, we are all set now to start the Q&A round.
00:21:58And looking at some of the chat messages, it seems that there were some of the viewers' face issues following
00:22:03the live link.
00:22:04So, apologies for that.
00:22:05But, of course, this video will be available on demand right after.
00:22:09But we have many, many callers who are with us.
00:22:12And I understand you could follow the earnings presentation clearly.
00:22:17So, let's, without further ado, let's get this Q&A rolling.
00:22:21And we're getting a lot of questions online, Hakan.
00:22:23So, let me take an online question and then I'll bring in our callers.
00:22:29This one comes in from James.
00:22:31Given how challenging 2025 has been, how do you intend to return to volume growth and positive free cash flows
00:22:38in 2026?
00:22:39Can you describe the building blocks for that?
00:22:42Hmm.
00:22:43I think rather clear.
00:22:45One is to continue the very successful cost and cash action program.
00:22:51And we set up another 5 billion.
00:22:53That will always be improvement in the right direction.
00:22:57Then, of course, to growth, we need to have a stronger offering in the all-electric segment.
00:23:04We have been missing a big part of that market segment.
00:23:08And, of course, we also have been, have problem with the localization.
00:23:13Not problem.
00:23:14But, I mean, we moved it from China to Europe.
00:23:16And, I mean, it takes time.
00:23:18Now we can ramp up the smallest car.
00:23:20And, of course, we also have the quality now on the level where it should be for the software on
00:23:27the EX90.
00:23:29And then, of course, the very important here new cars.
00:23:32I think we have a solid program there for all-electric and that together with the cars where we are
00:23:41really have a strong position.
00:23:43And that's plug-in hybrids.
00:23:46We will, of course, have them also for the next year.
00:23:49So, I think we have the cars for growth.
00:23:52Absolutely.
00:23:54And then, of course, the last element in our strategy, which will also need more momentum closer to customers.
00:24:02And that's why we are regionalizing.
00:24:03And I think, I mean, the Chinese organization is now more autonomous.
00:24:08They can work in a way with marketing and sales as you should do in China.
00:24:15And I think you already see some tendency there of improvements.
00:24:18We are gaining market share in a very tough premium segment where we are competing with other importers.
00:24:26And in the U.S., I think, so far, we have been struggling with currency.
00:24:32But we are now moving.
00:24:34We are being more local.
00:24:35We will move over.
00:24:37The XA60 will introduce another car.
00:24:39So, also, there we are ready to really sell cars built in the U.S.,
00:24:45which is also very good for the currency, of course, where we are struggling right now.
00:24:49It's the only way of solving that long term.
00:24:52So, I think the regionalization will also be a factor to really answer the question.
00:24:59Be more regional, have a strong electric product offering and very disciplined cost control work.
00:25:09Those are the elements.
00:25:11Very good.
00:25:12So, let me now invite some of our many callers who are with us this morning and who have been
00:25:16patiently waiting.
00:25:18Let's take Harry Martin from Bernstein.
00:25:23Remember, to be able to ask a question, you need to press star one one.
00:25:27So, good morning, Harry.
00:25:29And please go ahead with your question.
00:25:33Hi.
00:25:34Good morning, everyone.
00:25:35Thanks for taking my question.
00:25:36The first one I wanted to ask about semiconductor availability and pricing.
00:25:41Are you negotiating directly with your key semi suppliers or this mostly go through the tier one supply chain?
00:25:51And do you have any expectation for the impact?
00:25:55You know, we've seen headlines about quite meaningful increases in semiconductor pricing into 2026.
00:26:01Do you have any of that baked into the outlook this year?
00:26:06And then the second question, coming back again to the free cash flow growth in 26, the guidance there.
00:26:152025 was aided by the link sale proceeds, 7.8 billion.
00:26:20So, how difficult would it be to grow from that number when you have things like the inventory build on
00:26:26new models, some more restructuring, and quite possibly the US dollar headwind ongoing as well.
00:26:34And then the final one, just on liquidity.
00:26:37Total liquidity was down 8 billion SEK this year, despite the positive free cash flow.
00:26:45What is the minimum liquidity that you want to hold going forward?
00:26:49And will that liquidity number grow again next year with the guidance of the positive cash flow?
00:26:55Thank you.
00:26:56Maybe I could take the first one, Fredrik.
00:26:59And that's semiconductor.
00:27:01Yes, we are.
00:27:02We learned that really during the pandemic that you cannot just rely on talking to the first level of suppliers.
00:27:09You need to go to the tier two suppliers who are really supplying our suppliers and really secure that.
00:27:16That we learned and started doing.
00:27:18So, today we have that.
00:27:22And regarding the cost increase, I would say we don't see that as a major factor in our total cost
00:27:32level for the car.
00:27:33So, but we have a good control of the supply chain.
00:27:38Cash flow, Fredrik?
00:27:41Cash flow, it is, I mean, it's really about reaching affordable levels of investments, which is a really big contributor.
00:27:51Then it is about returning to growth and it is about delivering on the cost and cash action program.
00:27:56So, it's those three building blocks and the outlook we see for that makes us very confident to say that
00:28:01we will have clearly higher cash flows this year.
00:28:05And, I mean, investment, we have been invested heavily in the last year.
00:28:11So, I mean, that needs to come to a stop and it will.
00:28:15I mean, that I would say is the biggest contributor, which we can also control.
00:28:20So, I would say we should be rather safe in that we will reach totally much better cash flow levels
00:28:28in the future from that.
00:28:30And importantly, we start to reap the benefits, right?
00:28:33So, a big part of the EX60's great cost position is the fact that we have done these investments, not
00:28:39to forget.
00:28:41In terms of liquidity, we don't go into what liquidity targets we have, but I can say that we have
00:28:49a very, very healthy liquidity right now.
00:28:51And with more cash generation, that will grow into next year.
00:28:58And then you reach a point where it's too healthy.
00:29:02Then we can start talking about that. It would be a nice problem to have.
00:29:06Yes.
00:29:07All right. Thanks, Harry. Hope that answers your questions.
00:29:10Thank you.
00:29:11Let's stay with the callers.
00:29:13The next one is Jose Asimundi from JP Morgan.
00:29:17Good morning, Jose. And go ahead with your question, please.
00:29:21Good morning.
00:29:23A couple of questions, please.
00:29:26Can you talk about restructuring cash outflow that you expect in 2026 and capex that are actually, are you expecting
00:29:35it to be flat up or down?
00:29:37Second, Hakan, can you talk about product cycle and how do you expect this to help volume and mix in
00:29:442026?
00:29:45And then finally, if you could give some color, please, on the profitability of your electric cars at the moment.
00:29:53It is margin or gross margin or any metric you wish to speak about.
00:29:58But a bit more important, which do you think are the key measures to improve the profitability of your electric
00:30:04cars in 2026 and 2027?
00:30:07Thank you.
00:30:07To start with that, you can fill in, Fredrik.
00:30:10But I think the really big difference here is for the first time we will have an electric car, the
00:30:16EX60, which we can sell and price on the level of a normal corresponding hybrid car.
00:30:22And we're still having an improved margin.
00:30:27So, I mean, there is absolutely no risk that we will lose profitability if customers now go from an hybrid
00:30:35EX60 to an all electric EX.
00:30:40And that is a game changer.
00:30:42Otherwise, we have always, when people go electric, the costs were higher.
00:30:47So, that is something really positive.
00:30:50And I would say also looking forward, our all electric percentage will be higher.
00:30:57So, today we have 44% chargeable cars, all electric and the plug-ins.
00:31:04I think that mix will go up.
00:31:06And that's really the key to a growth.
00:31:10You talked about cash flow and investments.
00:31:15I would say investment after years of heavy investments in new products and in new factories, that has come to
00:31:24an end.
00:31:24And they will not be replaced by anything else.
00:31:27I think we are quite confident we will be on an affordable level.
00:31:31I think you can look into the figures where we were before we started this last big mountain in your
00:31:40curve, which you showed there, Fredrik.
00:31:42And, I mean, we need to come back to something like that.
00:31:45And that is an affordable level.
00:31:47And an affordable level is defined as where there is free cash flow that has to come.
00:31:52Because long term, of course, a company has an ambition to return money to its owner, not to invest it
00:31:58into constantly new products.
00:32:04Yes, Fredrik, can you fill in more?
00:32:06I may be adding on the structure of the cash flow for the year as I heard the question.
00:32:10So, I think two things important to note when it comes to cash this year.
00:32:14So, one is that, as I mentioned, we have planned investments in the first half, which will be quite heavy.
00:32:22So, we've just finalized critical stages of completing the Cossetry plant.
00:32:28We were actually there last week, was it, looking at it.
00:32:31Super impressive plant, by the way.
00:32:34Now, the bills, some of the big bills are coming.
00:32:38Another thing happening, especially in Q1, is that we will start to ramp up EX60 in April.
00:32:46And for us to protect our full year output from the Torslanda plant where it's made,
00:32:52we need to build, consciously build up some inventory of EX60s and EX90s to be sold later in the year.
00:33:01So, we have some very planned sort of cash drains in the first half of the year,
00:33:05which naturally means that the second half becomes better as we're ending clearly strong.
00:33:11No doubt, even for the full year, there is definitely, we will be on this affordable level
00:33:17and we will have a clearly better free cash flow than last year.
00:33:22Yes.
00:33:23But I think it's very important for people to understand the seasonality, as you say.
00:33:28Yes.
00:33:28First half year, there are things that will just come in.
00:33:31Last invoices will come in for the factory and so on.
00:33:38There was one more question on the product cycle volume mix for 2026.
00:33:43Volume, for the full year, we will go back to growth, but with a higher percentage of electric cars.
00:33:52And I mean, it's really supported by a full year of EX70.
00:33:57It's supported by a full year of European EX30s.
00:34:00It's supported by the EX60 that starts to ramp up in the second half of the year.
00:34:05It is supported by the ES90, which is just starting to reach customers.
00:34:11So we have a lot of sort of product momentum and importantly that product momentum is in the parts of
00:34:18the market that is growing, right?
00:34:19The overall premium market is expected to go down.
00:34:22We are expected to grow and we're doing that on the back of launching and having very attractive offers in
00:34:31the segments which are growing, which are the future electric segment.
00:34:34And I think maybe you can say it also as this. We will have growth in the year. What gross
00:34:42margin we will get, a lot of external factors, but the impact from the electrification will not be negative to
00:34:53our gross margins totally.
00:34:54Because first we have very good cost position for the EX60, but then of course with electric cars, we also
00:35:01will get new customers, new money coming in.
00:35:07So I would say we would not lose profit margins by electrifying now when we have the program we have.
00:35:18And also, of course, that is a driver to growth without jeopardizing our margins, which I think is new. And
00:35:29that's really the game changing with the EX60.
00:35:31Yes.
00:35:32Traditionally, otherwise your electric car will always have higher cost than you were.
00:35:38And I think that's a key point because that is also looking at our track record and looking to the
00:35:43future, that is the strategy, right?
00:35:45So we are clearly stronger when it comes to PHEVs and BEVs in terms of market share. And building, continuing
00:35:55that momentum as that market continues to grow across all three regions while ICE products are shrinking across all three
00:36:02regions.
00:36:02That is the fundamental of our strategy. So electrification is always additive to our profits.
00:36:07Yeah.
00:36:09Yeah.
00:36:10Good.
00:36:11Absolute profit is the word.
00:36:14All right. Let's have another caller now. So this one is from HSBC, and that's Pushkar Tendulkar. Good morning, Pushkar.
00:36:24Please go ahead with your questions.
00:36:28I hope you can hear me well. Just on the profitability side, it says a clear deterioration in Q4 versus
00:36:36a strong improvement in Q3. Some of the headwinds that you mentioned, I believe they will also continue in 2026.
00:36:46Even probably get worse in terms of, let's say pricing, tariffs will continue. So is that Q4 then is the
00:36:56level of margin underlying and then the cost savings on top of that, or there are other levers to pull
00:37:02up the margin as well within 2026?
00:37:08That's my first question. The second one is about whether you can provide us any update on this US ban
00:37:16on cars with China-made communication software. Are you still in discussions with the Department of Commerce or where exactly
00:37:26do you stand right now? Are you in the clear?
00:37:31Yeah. And then the third one is this last strategy update. This was probably the first time that Volvo talked
00:37:40a lot in detail about Geely synergies. And just yesterday, we are seeing news that Geely is going to utilize
00:37:48a factory, probably of Fords, to make cars in Europe.
00:37:55I just wanted to ask you whether there is a possibility that Geely can actually use Volvo factories as well
00:38:02to make their cars if they are localizing in Europe, or what's your view about this in terms of all
00:38:08the synergies that you have guided for the medium term? Thank you.
00:38:13I will start with that, Fredrik. Can you take the first one? Of course, I mean, our ambition is to
00:38:21share common architectures, common parts with Geely, especially on the hybrid side.
00:38:29Yes. I think we need to, when it comes to all electric cars, we have a really good architecture, which
00:38:35we should really use for more fully electric cars. But of course, to avoid double investment, we should rely more
00:38:45on Geely technology for hybrid cars.
00:38:47Yes. And that is what we are looking into. That, of course, could open up opportunities also that other labelled
00:38:56cars could be built in our factories. But that is something we have to look into.
00:39:02You need to know exactly what cars would that be. And I mean, the cars built in Volvo factories are
00:39:08decided by Volvo. But it could, of course, be something interesting for us. We have to look into when we
00:39:16know what that car is, what platform is it built on, and so on.
00:39:19So it's a long shot and a lot of question marks before you can say that will work. But it
00:39:25would be, of course, good for both of us if we could find that.
00:39:30ICTS is then these requirements in the U.S. for connected cars, which is a lot of questions that are
00:39:39asked about us as we are owned by a Chinese shareholder.
00:39:44And that is a process we are having. I think it is with the Department of Commerce in the U
00:39:51.S.
00:39:51And then there is a process going on and there should be an answer coming up here, not in a
00:39:57too distant future.
00:39:58But as we have said many times before, this is not something that keeps me awake during the night.
00:40:05So we have been in the U.S. for 70 years and we will continue being a very strong brand
00:40:11on the American market.
00:40:14I'm moving to the first question on headwinds and continuation in 26.
00:40:22I think a few things. First, if you look at Q4, that is typically a seasonally low margin quarter.
00:40:30And in part you have full year incentive programs to dealers and other things being paid out, which is impacting
00:40:37that, which you don't have in other quarters.
00:40:42We see heavy tariffs in Q4 and I think we see some potential tariff upsides.
00:40:50If you look at the US, Europe to EU tariffs, we are now paying them.
00:40:57If you look at the lower US to EU tariffs, where the statement has been that this will be reduced
00:41:06to zero, that is a big positive for us as we are manufacturing DX90 in the U.S. with a
00:41:14big export to Europe.
00:41:15As that is ratified, that is actually an upside.
00:41:19We also have quite a lot of product support.
00:41:22So we have all the cars and all the EX30 inventory of China produced cars with the higher tariffs is
00:41:32now basically flushed out of the European sales.
00:41:34So it's only European for Europe going forward.
00:41:38We have upgraded the EX90 with an 800 volt system.
00:41:42We have the ES90 coming.
00:41:44We have the XC70 as a big product in China, which is part of the reason why we grew or
00:41:51a big part of the reason why we grew 2% in Q4 and the market was down 12%, right?
00:41:56And then you have the EX60 and I think we have talked about the profitability on that as that hits
00:42:01the streets after summer with the ramp up.
00:42:04And then I think it's a lot about commercial excellence as well.
00:42:09We're pushing on cost and we're taking the next steps in variable cost, helping the margins, but we're also looking
00:42:15into how can we better sell the strawberries we have, if you will.
00:42:20So a lot of action there and a lot of these headwinds which are a bit Q4 unique, but it
00:42:26will be a challenging year and there is a lot of uncertainties.
00:42:30Very good.
00:42:31As always.
00:42:33I'll take one more question online from one of them tuning into us.
00:42:39So question to you then, Hakan.
00:42:41Now with the successful reveal of the EX60, can you confirm that the timing of the start of production is
00:42:47on time and customer deliveries is on time?
00:42:50And also, what have been some of the learnings from EX90 into EX60?
00:42:56The learnings to start with is that, of course, introducing a core compute system is a huge step and there
00:43:05are only two types of companies in this business.
00:43:09The ones who have done that very painful process and the ones that has that to do in the future.
00:43:17And I think we are very happy to be part of the category that has done it.
00:43:22So everything we learned and from the SPA2 and the EX90 is now carried over into the new car.
00:43:32So that is really the main carry over is the software pack.
00:43:36So everything, the quality we have during two years really secured in that software that is now in the new
00:43:44car.
00:43:47So I think that's the main learning.
00:43:50And can you confirm, I think, the EX60 start of production and customer deliveries as we communicate?
00:43:56Yeah, that is now our planned dates.
00:43:58Production starts in April and first customers should come to the first course to customers in the summer.
00:44:05And this is, of course, a plan and not without challenges, but I would say we are on track with
00:44:13that plan.
00:44:14And we also saw you and Anders driving the car in Stockholm not too many days ago.
00:44:20So it is also drivable.
00:44:23It's already driving.
00:44:25I would say it's the best, best car to drive of any Volvo in terms of handling.
00:44:30Yep.
00:44:32More callers then.
00:44:33So let's go to Deutsche Bank now.
00:44:36And it's Nikita Papaccio who's dialing in for us this morning.
00:44:40Good morning, Nikita.
00:44:41And go ahead with your questions, please.
00:44:43Good morning.
00:44:44I hope you can hear me well.
00:44:46I would have two questions.
00:44:47The first one is on the tariff impact you expect for 2026.
00:44:51So let's leave the US-EU tariff rate coming to the side because, I mean, it's not ratified yet.
00:45:01Should we expect a run rate of Q4 for 2026 or how do you think about the US tariff impact
00:45:08in 26?
00:45:09And then my second question is on your cost saving plan for 2026, the additional 5 billion.
00:45:15Should we think about this like a linear or more back and weighted cash in?
00:45:22So maybe some color here would be really helpful.
00:45:25Thank you.
00:45:29I think on the tariff impact, we saw a quite high impact in Q4.
00:45:37Some effects there link to used car sales and the EX30, for instance, will not repeat.
00:45:45But it's, I mean, we do have a big tariff impact.
00:45:52For the full year in 2025, we basically said that the net impact of this was about 1 billion after,
00:45:57you know, taking mitigating actions.
00:46:00As we look into next year, I think we will have more opportunities for mitigating actions.
00:46:05So, you know, tariffs are impacting the entire market.
00:46:12And therefore, over time, you know, the market will need to price for it all else equal.
00:46:17And I think we expect to see some of that movements during the year.
00:46:22But we are now, especially in the US, in a sort of hard to forecast environment also as the 45W
00:46:30was taken away with the consumer incentives.
00:46:34And what typically happens then is that, as we've seen play out in Sweden and in Germany, there's a big
00:46:41sort of pre-buy, which also happened in the US.
00:46:45There's a period of uncertainty, both in terms of customers, they've already bought the car, and in terms of pricing.
00:46:55And that tends to normalize over 6 to 12 to 18 months in terms of volumes coming back up, in
00:47:02terms of pricing and profitability coming back up.
00:47:04So, we would expect to see the same in the US, but let's see how it plays out.
00:47:12In terms of the 5 billion plan, we're constantly implementing actions there.
00:47:20I think the indirect cost part is relatively linear.
00:47:25There is quite some seasonality also in our indirect cost, you know, in terms of summer vacations, then we spend
00:47:32less on engineering, of course, etc.
00:47:34But I would say the indirect cost is quite linear.
00:47:38On variable cost, that is, you know, depending on commercial negotiations and introductions of new engineering concepts in the plants,
00:47:47which typically happen in conjunction with model years, for instance.
00:47:50So, you typically have a big step in when May production starts and November production.
00:47:56So, that's a bit more step change when it comes to the variable cost.
00:48:01Good.
00:48:04I hope that answers your questions, Nikita.
00:48:06This question comes in from Sam Perry, auto analyst.
00:48:10A short-term data point, but from your January sales release yesterday, deliveries were down 16%.
00:48:17Is it expected that these sorts of rates of decline will continue through to H1 before the new models drive
00:48:24up volume in the H2?
00:48:28No, I would say, of course, we will not continue because for the full year, during the year, we will
00:48:36come back to growth figures.
00:48:38So, but of course, January is often a low volume.
00:48:45We push out a lot of cars in December.
00:48:48It takes some time till dealers start ordering again.
00:48:52Do you have any better comments, Fredrik?
00:48:55Yeah, but I think an important point there was also to play back the tape on what happened last year,
00:49:01right?
00:49:01So, if you remember in Q4 2024, we had this unprecedented inventory flush out, if you will, where we reduced
00:49:10total inventory by 18 billion.
00:49:13That was a big part of wholesaling cars to dealers.
00:49:16And then in Q1, they need to retail those to customers.
00:49:20So, there was a lot of pressure, if you will.
00:49:25And when we now look at Q1 in January being down, that is the comparison month and quarter we're comparing
00:49:32to.
00:49:32For Q1 now, we expect retail deliveries and wholesales to be much more in balance, right?
00:49:38And the wholesales is really what's driving the financials.
00:49:41That's a good explanation.
00:49:42We had a really sort of very good January because we have pushed out a lot of cars.
00:49:48And now we're comparing with not really a normal figure, normal level.
00:49:53Yes.
00:49:53So, but when we compare with more normal months, this figure will not occur.
00:50:00Exactly.
00:50:01Good.
00:50:03All right.
00:50:03So, another caller then from Handelsbanken.
00:50:07Good morning, Hampus.
00:50:08Please go ahead with your question.
00:50:10Thank you very much.
00:50:12Just two questions from me.
00:50:14Just some clarification on the cost takeout program.
00:50:17Are there any one loss that is coming with this takeout program?
00:50:25And then the second question is more on if you can add some flavor on being a couple of weeks
00:50:32into the EX60 launch in terms of order activity.
00:50:37I'm not expecting you to put out any numbers, but if you would do more like comparable with the EX30
00:50:43launch, that was a very successful one.
00:50:44And also, given that the EX60 is such a competitive product against the plug-in hybrids, how do you see
00:50:56like EX60, one of the most successful plug-in hybrids, trading against the EX60 in terms of customers, maybe taking
00:51:05the step into tobacco electric?
00:51:06How should we think about that potential cannibalization risk?
00:51:10Those are my questions.
00:51:12Thank you.
00:51:14So, the last one, I think, is really important.
00:51:17And that, I mean, for the first time, we really could say we really, it's not so important for us.
00:51:23We will have a very strong offer.
00:51:25The ones who wants a hybrid will buy an hybrid.
00:51:28If they want an electric, they buy that.
00:51:30And, I mean, we price these cars on a similar level.
00:51:34And then the margins or the profit with the electric one is equal or better.
00:51:39So, we could be very, these two cars together is a really strong offering.
00:51:44And, I think, importantly there also is, you know, so it doesn't matter if it cannibalizes.
00:51:53But we also see a great growth opportunity, right?
00:51:57Because this is the biggest premium electric segment.
00:52:01And it has also been dominated by one big player.
00:52:06A lot of customers coming out of those US cars that they bought three years or four years ago now.
00:52:12They bought at the premium price point.
00:52:14Today, it's a different price point.
00:52:17But those consumers, I think, should get into a Volvo instead.
00:52:22It's as simple as that.
00:52:22But the two cars together is a huge, strong driver for growth.
00:52:28And the mix we can be open to.
00:52:31Yeah, exactly.
00:52:32And then I think also an important part of your question, are there any one-timers?
00:52:37I think what's really important to say, we are not planning any lay-off packages.
00:52:42So, I mean, this will be done by scrutinizing indirect cost in all areas.
00:52:47And it will also be done with a very restrictive view on rehiring when we have people leaving the company.
00:52:57Then it's the time to think, okay, could we organize this in another way?
00:53:01Is there an internal solution?
00:53:03And with that, we will have tough targets to reduce our headcounts,
00:53:08but without any type of packages and extra money that needs to be reserved.
00:53:18And also in terms of the savings.
00:53:20I mean, this is really, when we now did the big redundancy program,
00:53:25we structurally reorganized the company.
00:53:27We took away hundreds of management layers.
00:53:29We are set up to be able to be more efficient over time.
00:53:34And we are investing a lot into data, into AI, into automation.
00:53:40On the car side, we are moving towards one software stack.
00:53:44All of that fosters not only better cars and deeper insight,
00:53:49it also comes at a lower cost, right?
00:53:51So it's really scale in a lot of the things we do back-end.
00:53:56And I think Hampus had one more question.
00:53:58EX60, can you give us some flavor of like the response?
00:54:03No, it's very difficult to talk about the orders.
00:54:07I mean, from dealers, you could say a very high number, you could say lower one.
00:54:10But I mean, I think the production this year will definitely be delivered.
00:54:16And compared with others, I have the feeling this is probably the most successful launch I have seen.
00:54:24And I've been with, how many was it? I think 14 launches.
00:54:28And the response has been really positive.
00:54:33And also because we are targeting now an area where there is a lot of interest from journalists and consumers
00:54:40and retailers.
00:54:42So very positive.
00:54:43And now we have to bring it out to the customers till the summer and really meet these high expectations.
00:54:53And I think all systems are in green and go.
00:54:58But of course challenges.
00:55:01But that's why we are here to work hard.
00:55:06Good. We have time for a few more questions.
00:55:08This comes in from James Atwood at Autocar.
00:55:12Maybe more for you, Håkan.
00:55:13You've talked about the premium car market shrinking in the coming year.
00:55:17Do you see this as a temporary blip or the start of something deep and long term?
00:55:22No, I wouldn't say it's something long term.
00:55:26I think there will always be a sort of division on the market.
00:55:30I mean, that's in every all consumer products.
00:55:34So really there is a sort of mass market segment.
00:55:37And then there is people who want something special and paying more.
00:55:40We call that premium cars.
00:55:43And that will continue existing also when the cars will be electric.
00:55:47There will be other features and horsepowers or chrome and leather that brings that value.
00:55:54But there is a lot of things.
00:55:56And I think in direction of software features, infotainment and autonomous drive and so on.
00:56:03We will have premium cars.
00:56:06And I think it's also interesting to understand.
00:56:08Last time we really did a restructuring, our company introduced a so-called SPA platform.
00:56:14The ambition was now we have to catch up and be premium.
00:56:17We need to join the premium guys here, Audi and BMW and Mercedes in the top.
00:56:24I think we are in that league now.
00:56:26The ambition now with the next, this new beginning with the SPA 3 platform,
00:56:32that is to be the leader in all electric premium cars.
00:56:36And the EX60, when you look at the data on paper, I think it's absolute best car on the market.
00:56:42Now we have to build it and show that to our customers.
00:56:44I think it will be a significant game changer for this company.
00:56:49I think another comment on premium.
00:56:53With the EX60, we don't need more affluent customers, right?
00:56:59So you don't need to pay more to get into an electric car.
00:57:02That hasn't been the case before.
00:57:05So otherwise there could be a risk, you know, when even the premium customers need to be richer to move
00:57:11electric.
00:57:11But with the EX60, we're basically saying that is not the case.
00:57:15Yeah.
00:57:16And staying with you, probably Hakan, this is a long question, but let me try to paraphrase this.
00:57:21But I think what he's asking essentially is that we've seen a lot of our competitors over the years scaling
00:57:26back their ambitions.
00:57:28Write-offs, big write-offs that's happening.
00:57:30Now, recently, you have a big bet player in the world, Tesla in this case, sort of clearly indicating that
00:57:36they're sort of looking at a future beyond just physical cars.
00:57:40I mean, you know, driven by humans, much more humanoids, AI and, you know, robotaxis.
00:57:45But you and Volvo has been very clear and ambiguous about your electrification direction.
00:57:52Just help us again understand why that is.
00:57:55What is Volvo seeing that the others are not seeing?
00:58:00Probably we are seeing that any brand cannot be electric.
00:58:07It's not the propulsion option here.
00:58:10You can have diesel, petrol, electric, everything else equal.
00:58:14I think people looking for an electric car is looking for something totally new.
00:58:19I think that's why Tesla really are successful and an electric GM product less successful, maybe.
00:58:27So you need a brand that is suitable for being electric.
00:58:32And I would say one of the ones absolutely most suitable to be electric is a brand that is known
00:58:38for being safe, being functional, being a human-centric car.
00:58:45I think those customers would appreciate electrification.
00:58:49If you're looking for something which has a special engine sound or roaring acceleration, you are probably not so impressed
00:58:59with an electric car.
00:59:00So we have the right brand for being electric.
00:59:04And if other scale back is good for us.
00:59:07Now we see the electric market is growing and we see that we have a higher market share with electrified
00:59:15or electric cars than with conventional.
00:59:19So it is a sort of step change for our company.
00:59:23We need to follow the transformation.
00:59:25We need to lead it.
00:59:27We need to be fast.
00:59:28But then we will come out as a bigger company with a bigger market share in the new electric premium
00:59:34segment, which will not be characterized with leather seatings and chrome and horsepower.
00:59:41It will be characterized by other things that we are, of course, developing to put in the car.
00:59:48So, I mean, primarily we see software and digital development as a possibility to make better cars.
00:59:55And I think we will stay in the car business.
00:59:57There's nothing wrong with that.
00:59:59And we will be leader in the all electric premium segments.
01:00:04That's our ambition.
01:00:05And I think we have the technology and platform for it.
01:00:08But a lot of work to be there.
01:00:11And maybe adding one thing on the horsepower, because to some it is important, right?
01:00:15But for us, we don't have the 680 horsepower V8 twin turbo engine, super high margin car, which we are
01:00:25afraid of cannibalizing all.
01:00:27If you buy an EX60 and you want four wheel drive, you get 680 horsepower for free, basically.
01:00:33And we don't mind because we're not losing out on sales on something else, which is very, very profitable, right?
01:00:39So, I think that it's not the main brand proposition, but we toss it in a bit on the side.
01:00:45And I think others have a harder time doing that.
01:00:48And also, I mean, our customer probably appreciate the acceleration.
01:00:52You could change lane easy and so on.
01:00:55But you are not interested in driving 254 hours on the highway.
01:01:00I mean, that our cars are also limited to 180, but all of this horsepower looks good.
01:01:08But I mean, it's really the agility you get with it that our customers appreciate, not the high speed performance.
01:01:14Right.
01:01:15Maybe we have time for one last scholar for the day.
01:01:18And that's Agnieszka Vela from Nordea.
01:01:22Good morning, Agnieszka.
01:01:23Go ahead with your question.
01:01:24Good morning.
01:01:25Thank you.
01:01:26I hope you can hear me.
01:01:26I have two questions, maybe starting with Håkan on EX60.
01:01:32What a successful launch would mean for you in terms of volumes year one and year two, if you could
01:01:39share with us.
01:01:39And then another question on the negative price mix impact in Q4 specifically.
01:01:46Was the pricing or mix the bigger headwinds for you?
01:01:49And also, if you could share your pricing strategy.
01:01:52I think that earlier in 2025, you were very much determined to defend your pricing.
01:01:58Now you talk a bit more about the pricing pressure.
01:02:00Thanks.
01:02:02Successful launch.
01:02:03I mean, we could reveal a bit about volumes.
01:02:08I mean, we should roll out around a bit more than 40,000 cars is what we can do this
01:02:14year.
01:02:15And I'm quite sure that that will happen.
01:02:17And then I think looking into the next year, I think you can look into the volumes we have with
01:02:24the EX60 and assume that part of that will be electric.
01:02:28But add on top also that having a plug-in and electric should also be, of course, a possibility to
01:02:35grow.
01:02:35And then I think when you see where we land after this year, I think you can do a forecast
01:02:42for 27 by looking into the mix we will have at the end of the year.
01:02:47Now we are still at the beginning of the year.
01:02:49So let's summarize, say, our ambition now is to bring that car out and produce the first year.
01:02:56And then that will bring growth in the 60 segment.
01:03:01Let's see what the mix will be.
01:03:03And as we said, we are other agnostic customers.
01:03:07Choose what it is.
01:03:08But the sum of the XC and the EX will be higher than we have with the XC today.
01:03:16And maybe it's worth saying also in this year's production, right?
01:03:20We are doing a very controlled ramp up, learning a lot also from the EX90 and some of the challenges
01:03:27we have there.
01:03:28So this is about getting a product out also with high quality, which is key.
01:03:36And then longer term growth opportunities, I think, are endless.
01:03:41One more question on pricing in general, pricing pressure in the market.
01:03:46We do see pricing being a big element in Q4.
01:03:53I think especially in the uncertainty both in the US and in part in China with these consumer incentives going
01:04:02away.
01:04:02So as that normalizes, I think that will also support us on the pricing side.
01:04:10In terms of defending margins, I mean, to me, the key optimization is really creating absolute profit and absolute cash
01:04:19flows.
01:04:19So it's finding that balance right in an uncertain market.
01:04:27Good. I said Angeska would be the last caller, but let me take one more caller since he's been waiting
01:04:32for a while.
01:04:32Ross McDonald from Citibank.
01:04:35Good morning, Ross, and please go ahead with your question.
01:04:39Mindful of time, I'll keep this to one question.
01:04:41But I think important tasks, well, given your leadership in the EV space.
01:04:44Obviously, I think since we've heard from you last, there's been some changes in the proposed 2035 CO2 rules in
01:04:53Europe and also discussions now around minimum pricing for Chinese cars coming to Europe.
01:04:58So very interested, you know, on the CO2 side, if you think that this is now a potential final ruling,
01:05:05if you think the Commission's on the right track with these proposed changes.
01:05:09And then linked to that on the minimum pricing from Chinese cars into Europe, is there any way Volvo can
01:05:14benefit from that?
01:05:16I know you want to be local for local, but obviously you have some compelling models in China that you
01:05:21potentially can now bring in tariff-free into the block.
01:05:24So very interested if you would intend to do that over the midterm.
01:05:28Thank you.
01:05:28We don't see, beginning with that, any big potential.
01:05:33I mean, the cars that we could be interested in looking into taking in are hybrids and are not penalized
01:05:39with these high tariffs.
01:05:41And all electric cars, only the one is really ES90 that we are bringing in from China.
01:05:47But that is, of course, something we could look into, but it's not something really important right now.
01:05:57And I think it's also not that easy to agree on such a minimum price, which is favorable for us
01:06:08as well as the one exporting the cars.
01:06:12So, I mean, it's a very difficult question. I think there is no simple solutions on that.
01:06:20I think at the end, if you want to avoid the tariffs, I think you need to produce locally.
01:06:27That's the purpose of the tariffs, and I don't think it's any possibility to negotiate yourself around that.
01:06:34That I don't think will work.
01:06:36When it comes to the legislation, we have always said, if you want to push electrification in Europe and stabilize
01:06:48or create a strong auto industry in Europe,
01:06:52I think it's good with clear signals that we will be electric to a certain period.
01:06:58So we have never argued against the 2035.
01:07:01And what has happened now, if you analyze, it seems like a very, very mild deviation.
01:07:08You could have some percentages of petrol cars if you use CO2-free steel.
01:07:14And I think that's not an option that we are looking into to use.
01:07:19So for us, it really hasn't changed anything from 2035, we need to be able to sell only electric cars
01:07:28in Europe.
01:07:29So we, to be frank, don't see any big difference.
01:07:33It's probably for some niche sport cars producers might see it's an option to use this 10% or whatever
01:07:41it will be.
01:07:43Good. And now to bring this call to a close, and I'll sort of, this question has come up in
01:07:49different ways,
01:07:49but I'll try to summarize three or four questions that we've received back to you, Hakan,
01:07:53but also maybe a good question to bring this to a close.
01:07:56A little bit back to long-term value creation, right?
01:07:59We unveiled a long-term value creation strategy during the strategy update in November.
01:08:03But of course, the world remains turbulent and will probably remain, you know, for the foreseeable future.
01:08:09So if you were to sort of summarize, like, how do we get from the run rate in Q4 to
01:08:158% plus in strong free cash flows?
01:08:18Now, we need them to have a really good answer to the challenging coming to us from outside.
01:08:24I mean, you have the climate is a big challenge.
01:08:27We should electrify, not only to contribute to a better climate, but also bring our customers good products.
01:08:35So that threat might be seen as a threat by others. For us, an opportunity.
01:08:42We will come out as a stronger company electric.
01:08:46And I think all indicators we can see now indicates that that is what is happening.
01:08:52We have higher market share in electrics and so on.
01:08:55And now with new technology, we bring down costs, so we will have profitability.
01:08:59Second thing is, which is unique, we want to be on the market with a strong global brand also in
01:09:07the future.
01:09:08Then you need to regionalize your activities.
01:09:12You cannot have one product for all. It has to be more adapted variants.
01:09:17There has to be adapted and different approaches to marketing and how you communicate with customers.
01:09:24I think we have really defined that and are on our way to a more regionalized operations, maintaining one strong
01:09:33global brand.
01:09:34And the third thing is our connection with Geely and the Chinese very strong supplier industry will be seen more
01:09:44and more as an advantage.
01:09:45We can have more common parts and bring down our cost structures.
01:09:50We can avoid double investments in Chinese software as well as in Western software.
01:09:57We can rely on cars sold in China.
01:10:00We can rely on Geely developed software and we can save a lot of money.
01:10:05So I think we have a good answer to these three external challenges.
01:10:10And if we just continue and have a bit of patience doing that, we will come out as a much
01:10:15stronger company in some years' time.
01:10:18Thank you, Akan.
01:10:19Thank you, Frederick.
01:10:19And thank you, everybody.
01:10:20As I said, the link to this live webcast, in case you missed parts of it, will be available.
01:10:27So make sure to tune in.
01:10:29But for now, we need to bring this to a wrap.
01:10:31But of course, you can reach out to us through our PR channels or the investor relations team for more
01:10:37questions.
01:10:37We are here to support you.
01:10:39But from all of us here, thank you and have a great day ahead.
01:10:42Goodbye.
01:10:42Thank you.
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