Volvo Cars reported a lower-than-expected operating profit for the fourth quarter of 2024, with an operating income of 3.9 billion Swedish kronor and a revenue of 112.1 billion Swedish kronor. The company's operating margin decreased to 5.6%, affected by a 1.7 billion kronor impairment related to its joint venture with Northvolt, Novo Energy. Despite a 28% profit drop in the fourth quarter, Volvo Cars achieved record sales, revenue, and profits for the full year of 2024, with a revenue of 400.2 billion Swedish kronor and an operating income of 22.3 billion Swedish kronor, marking a 12% rise in full-year operating income. The company sold 769,389 vehicles in 2024, marking a new sales record, with an 8% sales increase for the year. In the fourth quarter, sales increased by 1% overall, but decreased by 6% in China and 2% in the US. The share of battery electric vehicle (EV) sales rose to 23% from 16% the previous year. Looking ahead, Volvo Cars anticipates a challenging year in 2025 due to increased competition and potential trade tensions, expecting slower market growth and increased discounts across the industry. CEO Jim Rowan highlighted the need for production and supplier relocation considerations due to global tariffs and geopolitical uncertainties. Volvo Cars also noted a shift towards more advanced automotive technologies beyond electrification, such as software and connectivity, and expects hyper-competitiveness in China to impact other markets as well. The company reiterated its 2026 guidance to deliver a core earnings before interest and taxes (EBIT) margin of 7-8%.