Volvo Cars withdraws 2026 guidance amid sales slump

Volvo Cars has issued a profit warning and withdrawn its full-year 2026 guidance for sales volumes and cash flow due to deteriorating market conditions. The company reported a 10.7% decline in global sales during the third quarter, falling to approximately 141,609 units.

The downturn is primarily driven by a significant collapse in the Chinese market, where sales plummeted by over 40%, and a slower-than-expected recovery in the United States, where sales fell by 14%. While the European market remains resilient with a 2% increase in deliveries, it was insufficient to offset the losses in Greater China and the Americas.

In response to the financial pressure and market uncertainty, Volvo Cars is implementing additional measures to accelerate its strategic roadmap. The company also announced a leadership transition, with Klaus Zellmer set to succeed Håkan Samuelsson as CEO by October 2027. The manufacturer's stock experienced a decline following the announcement.