Podcast Summary: Volvo CEO Håkan Samuelsson Talks Earnings

Podcast: Bloomberg Talks
Host: Bloomberg
Guest: Håkan Samuelsson, CEO of Volvo Cars
Date: October 23, 2025

Episode Overview

In this episode, Bloomberg speaks with Håkan Samuelsson, CEO of Volvo Cars, following the company’s third-quarter earnings report. The discussion centers around Volvo’s profitability despite a decline in sales, navigating production shifts in response to tariffs, ongoing U.S.–China policy developments affecting the auto industry, and how Volvo is handling global supply chain challenges, especially concerning semiconductors.

Key Discussion Points & Insights

1. Volvo’s Third-Quarter Financial Performance

• Profit Up, Sales Down:

  • Volvo’s quarterly profits rose as a result of a $1.9 billion cost-saving program, despite an 8% drop in sales year-to-date (00:22).

  • Samuelsson is confident about the reasons behind lower sales, mainly a planned production change for a small electric car shifted from China to Belgium (00:56).

    "We know really why we were down in sell. We had very high sales of our small electric car last year and that was made in China… And then we lost production capacity. But now we are back producing that car."
    — Håkan Samuelsson (00:56)

• Focus on Profitability:

  • Samuelsson emphasizes that his top priority is restoring solid cash flow and maintaining profitability, rather than volume alone.

    "I'm more concerned that we continue with our actions on profitability. Coming back to a solid cash flow. That's my number one priorities."
    — Håkan Samuelsson (01:12)

2. Production Strategy Amid U.S. Tariffs

• Manufacturing Shift:

  • Rather than simply moving production out of China, Volvo aims to increase utilization at its Charleston, South Carolina plant.

  • New car models will be produced in the U.S. to reinforce Volvo’s domestic presence (01:43).

    "I don't think you should call it moving production, but we will increase the utilization in the factory in Charleston… We need to be an American company in producing closer to our customers."
    — Håkan Samuelsson (01:43)

3. Navigating U.S.–China Policy and Ownership Issues

• Ongoing Dialogue with U.S. Authorities:

  • Volvo, owned by a Chinese parent company, awaits feedback from the U.S. Commerce Department regarding future model sales approvals (02:20).

  • Samuelsson notes the process is ongoing, with no immediate urgency.

    "Now there is a constant dialogue with our legal expert and with the people in the department and there is no urgency. I think this is for model year 27 or something."
    — Håkan Samuelsson (02:32)

  • When asked about confidence in receiving an exemption, Samuelsson is measured:

    "I think you can never be fully confident about anything these days. But that's not what keep me awake in nights."
    — Håkan Samuelsson (03:05)

4. CEO Reflections and Company Outlook

• Personal Confidence:

  • Samuelsson expresses optimism about Volvo’s future, highlighting positive sales momentum in September.

    "I'm quite confident about the future of our company and I'm really glad to be back and I think we with our result of 7.4, I think hopefully that is still a sign of of a turnaround of the company."
    — Håkan Samuelsson (03:20)

• Sales Recovery:

  • September marked the first month of renewed sales growth for Volvo in the current year (03:40).

5. Semiconductor Supply Chain Concerns

• China Semiconductor Restrictions:

  • The host asks about the impact of new export restrictions on Dutch chipmaker Nexperia and potential disruptions (03:55).

  • Samuelsson indicates Volvo hasn’t been affected yet but is monitoring the situation closely and working with suppliers, drawing parallels to pandemic-era disruptions.

    "It's not supplied directly to us but we are monitoring this very closely… I think we learned then to really be hands on and really together with our suppliers… This is a problem the whole industry is facing, so we are definitely not alone with it."
    — Håkan Samuelsson (04:14)

Notable Quotes & Memorable Moments

• On worries keeping him up at night:

  "No, I'm too old for that. So I sleep rather well."
  — Håkan Samuelsson (03:20)

• On being an American automaker in America:

  "We need to be industrially present. We need to be an American company in producing closer to our customers."
  — Håkan Samuelsson (01:56)

Key Timestamps

| Timestamp | Topic | |-----------|----------| | 00:22 | Introduction to Volvo’s profits and sales; start of interview | | 00:56 | Production shift from China to Belgium, impact on sales | | 01:43 | Plans for increased U.S. production in Charleston | | 02:32 | Status of U.S. Commerce Department’s model approval process | | 03:05 | Confidence in achieving U.S. exemptions | | 03:20 | Samuelsson’s personal optimism for Volvo’s future | | 03:55 | Discussion on chip supply chain issues | | 04:14 | Proactive supplier engagement and industry-wide challenges |

Conclusion

This episode offers an insightful look at Volvo’s operational strategies and leadership perspectives in a challenging global environment. Håkan Samuelsson’s confidence in Volvo’s adaptability stands out, along with a pragmatic approach to international policy challenges and supply chain risks. The episode provides candid commentary on the realities of running a global automaker amid shifting production, regulatory uncertainty, and technological disruption.