Volvo Car AB (publ.)

Q3 performance: major loss driven by China volume collapse - Retail sales down 11% YoY; wholesale down more (Volvo intentionally helped dealers manage inventory, especially in China). - Revenue down 23% YoY (driven by ~SEK 10.7bn volume and SEK 3.5bn from mix/pricing; “other” also swung negatively due largely to CAFE credit write-downs and prior-year one-offs). - Core result SEK -3.7bn (vs very strong Q3 last year). Full group result SEK -5.6bn loss (includes accounting effects from Polestar and CAFE).

Key negative accounting headwinds (not just operations) - SEK ~900m accounting effect from Volvo’s share of Polestar Q2 losses. - ~SEK 1.1bn CAFE emission credits write-down in the US due to a retroactive regulation change reducing CO2 requirements back to model year 2022—surplus credits can’t be fully valued with counterparties. - Free cash flow (FCF) SEK -8.9bn in Q3; cash remains strong but near-term cash pressure reflects seasonality and working capital/production timing.

Liquidity and near-term outlook: “weathering the storm,” no quick market tailwind - Liquidity is still solid: ~SEK 32bn cash and SEK 55bn total liquidity. - Management explicitly expects no short-term market tailwind; China weakness may continue or deteriorate. - Confidence is mainly based on internal actions; the next major product/strategy benefits are expected mid-next year (2H).