Economy

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Volvo Cars fell - Renault slowed the entire sector

The European automotive sector fell during Wednesday trading after Renault lowered its full-year forecasts. The French carmaker's shares plunged 18 percent a couple of hours after opening.

TT notes that it is the biggest decline since the outbreak of the pandemic. Direkt writes that the price drop is lowering the entire sector. On the Stockholm Stock Exchange, Volvo Cars fell more than 3 percent.

Renault earlier this morning lowered its operating margin forecast to 6.5 percent, from previously "at least 7 percent". The forecast for free cash flow has been lowered to 1.0-1.5 billion euros compared to the previous forecast of 2 billion. The company refers to "increased competition and a weakened car market".

In Germany, Volkswagen, Daimler Truck and BMW are down 0.7-3 percent.

Volvo Cars' future
Mysterious fault costs Volvo Cars millions: "Catastrophe"

A fault with the on-board charger in the Volvo EX90 electric car has led to extensive warranty replacements, writes the industry website Carup. According to a source, the fault is "very mysterious" and "no one understands why the car breaks down".

- Neither Volvo nor the supplier have managed to understand what is happening. It is a real disaster, a source tells the site.

On Monday, Volvo Cars announced that they are taking a write-down of 11.4 billion kronor due to the launch delays of the EX90 and ES90 car models and new import duties. According to Carup, this fault costs millions of kronor in write-downs.

Volvo Cars will release its interim report on Thursday, July 17 at 07:00. 

Experts on Russia tariffs: "Unsure if it will work"

Donald Trump's threat to impose "secondary tariffs" of up to 100 percent on countries that trade with Russia if no peace agreement is reached within 50 days is intended to pressure the country.

– It is about [...] cutting off the income to their war chest, which largely comes from oil, for example, says Ola Olsson, professor of economics at the School of Economics at the University of Gothenburg, to Aftonbladet.

Whether the measure will work is unclear, since it is unclear how the tariffs would be imposed. Even experts that the New York Times has spoken to question the credibility of the threat.