Volvo (VOLV-A.ST) is shifting focus to US-built SUVs as tariffs eat into its sedan business from China and the EU.

Yahoo Finance Senior Reporter Pras Subramanian breaks down Volvo's latest earnings, product strategy, and the CEO's call for dropping EU tariffs on US autos.

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Video Transcript

00:00 Speaker A

We got Volvo. Um so it reported earnings for the second quarter. What can you tell us about those results and whether the CEO said anything about tariffs?

00:09 Speaker B

Uh you know, results weren't that great. Better than expected from Wall Street analyst point of view, but they actually swung to a loss. The main issues other impairments. But some of the bigger things are that they're facing that 25% tariff from EU built goods, but then also 100% tariffs from China because they built some of their sedans there. And what's happening now, Volvo is going to now pull back some of those products like those sedans and wagons, focus more on those uh upper end SUVs, uh even build some of them like the XC60, very popular mid-size SUV in the US. Kind of re-juggling or reshifting the the the kind of portfolio here to focus more on on on uh US goods. Also want to note that uh Volvo's new CEO Hakan Samuelsson, the guy who actually returned to the company, actually have some choice words for the EU saying that the EU should get rid of their tariffs on on US autos right now. Make it as you he called them unnecessary, make it more level playing field. So he they want to actually and he's because he wants to make a deal. He needs he needs the US tariffs to come down because he's saying EU tariffs don't really matter because US goods don't really compete that well in Europe anyway.

02:00 Speaker A

That is very interesting, also given some of the rhetoric we've gotten from European Union officials about changing the business environment there. Cross, thanks so much. We'll see you in a minute.  Related Videos

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