Volvo Cars announced a fourth-quarter operating profit of 3.9 billion Swedish crowns, a decrease from 5.4 billion the previous year, impacted by a writedown associated with its battery joint venture with Northvolt. The company anticipates 2025 to pose significant challenges due to a slowdown in demand and heightened competition, potentially resulting in sector-wide price reductions. Despite a 13 percent increase in annual profits to 15.9 billion kronor in 2024, Volvo Cars is grappling with challenges stemming from tariffs on electric vehicles manufactured in China. In response to market conditions, Volvo is relocating production of one model from China to Belgium and has revised its electric vehicle objectives from being fully electric by 2030 to ranging between 90 and 100 percent.