Volvo Posts a Third-Quarter Operating Loss of 5.6 Billion Kronor and Plans a Cheaper EV for 2027

Volvo Cars swung to a heavy loss in the third quarter and said it will bring a lower-priced electric car to market after the summer of 2027. Revenue fell to 66.9 billion Swedish kronor from 86.4 billion a year earlier, and operating income was a loss of 5.6 billion kronor, against a profit of 6.4 billion in the same quarter of 2025.

The numbers

The figures come from Volvo's quarterly press release, dated October 23.

Measure (SEK)	Q3 2026	Q3 2025
Revenue	66.9 billion	86.4 billion
Operating income	-5.6 billion	6.4 billion
EBIT excluding joint ventures and one-offs	-3.7 billion	5.8 billion
EBIT margin on that basis	-8.4%	7.4%
Earnings per share	-1.63	1.75
Free cash flow	-8.9 billion	-4.3 billion

Fully electric cars made up 32 percent of sales, up from 22 percent a year earlier, and electrified models, which include plug-in hybrids, reached 53 percent against 46 percent. The mix is moving toward electric even as total revenue shrinks.

Why profit fell

Volvo blames United States tariffs and the removal of consumer incentives for hurting margins. It also says the ramp-up of the EX60 is slower than planned because of the cell-to-body technology the car uses. The company reports more than 50,000 European orders for the EX60, so demand is not the stated problem. Production pace is.

Chief executive Håkan Samuelsson said the company needs to reinforce its turnaround plan with additional decisive actions. The release does not detail those actions, and we found no figures on job cuts or cost targets in the material we reviewed.

The cheaper EV

Volvo says a next global battery-electric model aimed at a large, lower-priced European segment will see first deliveries after the summer of 2027. The company's release does not name the car, the platform or a price.

Electrek fills in more. It reports the car will use Volvo's SPA3 platform, the second after the EX60, and that Volvo plans 13 new cars through 2030, of which three are revealed in 2027, one for Europe and two for China. Electrek says an EX50, a successor to the EX40, is likely, citing a trademark filing at the EU's intellectual property office in July 2026. Treat the name as unconfirmed until Volvo uses it.

Mixed signals on the US

Electrek says Volvo Cars America's president, Luis Rezende, indicated a 2027 EV will replace the EX30 at very similar pricing, and that the EX30 has been discontinued in the US. The EX30 Single Motor cost $34,950 there, per Electrek. Earlier reports from Automotive News, relayed by InsideEVs and Auto123 in August, instead described an EX50 that would start in the high $40,000 range, be built in Kosice, Slovakia and reach the US by the end of 2027. Those could be two different cars, or an unsettled plan. Neither the price nor the name is official, and Electrek says a US launch decision is unclear.

What it means for buyers

Volvo's flagship electric strategy has been squeezed between a premium price and a market that wants more affordable cars. A cheaper SPA3 model is the company's answer, but it is more than a year away, so buyers today still face the current line-up, including the EX30 outside the US. Anyone waiting for a lower-priced Volvo EV should assume late 2027 at the earliest for deliveries.

For the industry, the results add to a pattern in which Western automakers are being pressed by tariffs, softer incentives and cheaper rivals. We found no India-specific link in this release.

What to watch next

Watch for the specific actions Volvo adds to its turnaround plan, a name and price for the 2027 car, and EX60 delivery numbers over the coming quarters.

Published October 25, 2026. Gadgets365 will update this article as more information becomes available.