For example, Volvo reports that the net profit will be 800 million euros lower this year, but by the ES90 and EX90 alone. By the ES90 – which is being built in China – the import duties in the United States and Europe are the problem. The EX90 is actually especially problematic.
Volvo EX90 turned out not to be finished yet
A few months ago journalists were allowed to ride with Volvo’s large SUV for the first time and that ended in a disappointment. The car was not finished. Volvo needed extra development time to solve all kinds of software and sensor problems. That is why the market introduction of the EX90 was postponed.
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Ex30 was also not perfect
In that sense, Volvo has to be careful for his good reputation, because the EX30 was also not perfect when it went on sale. In fact, That is still not the electric crossoverwith its obvious cost savings in the interior and its disabled operating concept.
Depreciation on balance
Anyway, Volvo now announces a ‘one-off non-cash impairment charge’ for the ES90 and EX90. This means that the value of both models on the balance is drastically reduced, because it is expected that they will raise less money than expected during their life cycle.