Volvo Says Iran War Hit US Demand, Signaling Wider Auto Pain

Volvo Car AB said the war in Iran hurt US demand in the first quarter, offering one of the clearest signs yet that the conflict is starting to dent sales as higher fuel prices curb spending.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Volvo Car AB said the war in Iran hurt US demand in the first quarter, offering one of the clearest signs yet that the conflict is starting to dent sales as higher fuel prices curb spending.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The automaker’s global sales fell 11% in the three months through March, Volvo said Thursday. The decline in the Americas region — where its lineup skews toward larger, fuel-intensive SUVs such as the XC90 — was even more pronounced at 29%.There, “weak customer sentiment was exacerbated by the ongoing geopolitical conflict in the Middle East,” the Swedish-origin company said.Volvo’s warning underscores the growing risk for European and US manufacturers as the Iran war drives up fuel prices and shipping costs and weighs on wider economic sentiment. While high pump prices can nudge buyers toward electric vehicles, past energy crises have tended to turn consumers off from big-ticket purchases.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Volvo isn’t alone in what was a difficult start to the year for automakers in the US. Sales of BMW AG passenger cars there fell 17% in the first quarter. The German luxury-car maker wasn’t specific about reasons for the drop.

General Motors Co. and Honda Motor Co. also reported sliding deliveries in the world’s second-biggest car market.Volvo is trying to recover from a tough end to 2025. Tariffs, heavy discounting and a stronger Swedish krona weighed on its fourth-quarter profitability. The manufacturer owned by China’s Geely is currently in talks with US authorities over data protection and expects to win approval for continued sales in the market within the next few months.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.