Volvo Cars has withdrawn its previous full-year sales volume and cash-flow guidance, citing an increasingly challenging market and a weaker near-term outlook.

The Swedish automaker said lower-than-expected sales had prompted it to reassess its expectations for the year, although it did not provide revised guidance. Volvo Cars has been under pressure from tariffs, softer electric-vehicle demand and high development costs.

The company sold 141,609 vehicles globally in the third quarter, an 11% decline compared with the same period last year.

Volvo said deteriorating conditions in China and a slower-than-expected recovery in the U.S. premium market were the main factors behind the weaker outlook. Europe, by contrast, remained relatively resilient.

The announcement sent Volvo Cars shares lower, with the stock falling around 3% in early trading after briefly reaching a record low of 14.60 Swedish kronor. The shares have lost roughly half their value during 2026.

The latest warning marks a reversal from Volvo’s July outlook, when the company forecast significantly stronger sales in the second half of the year and expected strong positive free cash flow toward year-end.

The automaker is also preparing for a change at the top. Klaus Zellmer, currently CEO of Skoda, is due to become Volvo Cars’ chief executive within a year as the company seeks to strengthen its position in an increasingly competitive global market.

The latest figures underline the pressure facing Volvo as weak EV demand, difficult conditions in China and uncertainty in the U.S. continue to weigh on its performance.