Volvo Cars reported a sharp decline in second-quarter operating profit on Thursday that nonetheless exceeded analyst expectations, sending shares up, though the company continues to face headwinds from tariffs and softening demand.

Volvo’s flagship SUV is getting a bit long in the tooth, so a new generation is in order, according to the company’s boss.

Volvo Cars is the biggest newsmaker this week in regards to auto tariffs.

The newly refreshed XC60 will be localized in the latter part of 2026, most likely hitting dealership lots for the 2027 model year

With European roots and a Chinese majority owner, Volvo Cars is one of the automakers most exposed to President Trump’s trade war. Its response under new Chief Executive Håkan Samuelsson came together this week: cut expectations;

Volvo will begin producing its top-selling XC60 SUV at its Ridgeville plant by late 2026, expanding U.S. manufacturing and supporting American jobs.

As the electrified market is still in full swing, Volvo rises to the top with the release of their compact SUV, the EX40. In 2025, Grasso’s Garage has recently tested the XC60 and XC90 in both

Swedish truckmaker Volvo reported a slightly better-than-expected second-quarter operating profit on Thursday, as service revenues helped it offset lower truck sales and weakness in North America.

To be fair, the XC90 does get a new face. The front grille is wider and flatter with a criss-cross pattern enmeshed with the logo. The headlamps are narrower, while still retaining the Thor’s hammer LED signature and the bumper is more clutter-free than before.