Disappointing sales mean the Swedish carmaker will miss its guidance for 2026, even as its European business remains resilient, Volvo said Friday. It decided not to publish new near-term forecasts, citing increased market uncertainty.

The shares slumped as much as 7.8% in early trading in Stockholm, the biggest intraday decline since July when it abandoned its target of selling more cars this year due to weakness in China. It was still counting on a second-half recovery underpinned by demand in Europe and the US. The stock is down more than 50% this year.

Volvo’s latest warning comes just two weeks after outgoing chief executive officer Håkan Samuelsson presented a strategy to boost profitability through regionally tailored models and closer cooperation with controlling shareholder Zhejiang Geely Holding Group Co.

Plans include sharing factories and components with partners as Volvo grapples with fierce competition in China, US tariffs and tepid demand.

Volvo announced separately on Friday that sales fell by 10.7% in the third quarter as strong demand for fully electric cars wasn’t enough to offset the weakness in China and the slower-than-expected US revival.

Greater China sales plummeted by more than 40% and fell by 14% in the Americas, while they edged up by 2% in Europe and the rest of the world.

Deteriorating market conditions will have a “significant negative impact” on third-quarter core earnings and cash flow, adding to previously flagged pressures from raw-material costs, currency movements and higher depreciation and amortisation, Volvo said.

It said it will provide details on additional planned measures when it reports results on Oct 23. Its longer-term ambitions to reach strong positive cash flows and deliver an 8% operating margin remain unchanged.

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