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Volvo Cars sales drop 12% in June; fully electric cars fall 26%

Volvo Cars, based in Sweden, reported Wednesday that sales volume had fallen for the fourth consecutive month due to trade tariffs as well as a weaker demand for electric vehicles.

Volvo Cars, owned by China's Geely in majority, announced in a press release that it had sold 62 858 cars in the month of June, down 12% from a year ago.

In April, the group, in response to tariffs, retracted its earnings forecasts for the next two-year period. The sales of electric vehicles fell by 26%, accounting for 22% in total sales.

The sales of all electrified vehicles, including plug-in hybrids and electric cars, fell by 19%, accounting for 44%.

Volvo Cars

In May, it announced that it would be cutting 3,000 jobs - mostly in the white collar sector - as it battles with rising costs, a decline in demand for electric vehicles and uncertainty in global trade.

Sales volumes were down by 14% in Europe, while they were down by 7% in the U.S.

Early trade saw shares of the company rise 1%, bringing their year-to date fall to 27%.

Volvo Cars didn't comment on sales figures. (Reporting and editing by Anna Ringstrom, Louise Heavens and Jagoda darlak)

(source: Reuters)