Volvo Cars Posts SEK 11.4 Billion Impairment Charge Amid EX90 and ES90 Challenges

EX60 to Inherit Tech Foundations as EX90/ES90 Struggle Under Tariffs and Delays

Volvo Cars has announced a one-off, non-cash impairment charge of SEK 11.4 billion (~AUD 1.6 billion) for Q2 2025, reflecting revised financial expectations for its EX90 and ES90 electric vehicles. The charge is a result of earlier production delays, ballooning R&D costs, and the bite of new global import tariffs — especially in the US and Europe.

While both models benefit from significant software and tech upgrades, lifecycle profitability for the EX90 is now projected to be lower than anticipated. As for the ES90, import tariffs have rendered US sales economically unviable, while squeezing margins in Europe.

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CFO Fredrik Hansson acknowledged the harsh market realities: “Development and launch delays for the EX90, and strategic investment prioritisation, have led us to reassess volume expectations.”

Despite the write-down, Volvo remains bullish about its electrified future. Learnings from the EX90 and ES90 will roll into the next-gen Volvo EX60, set for a 2026 launch. That model will boast mega-cast body components, cell-to-body battery tech, and in-house e-motors — promising cost cuts and sharper performance.

The SEK 11.4 billion charge includes SEK 4 billion in cost-of-sales impact, with the bulk hitting R&D. Net income will drop by SEK 9 billion, with full Q2 results landing 17 July 2025.

It’s a costly course correction, but one that Volvo hopes will pave the way for a leaner, meaner, electrified lineup — one mega-cast at a time.

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