Volvo is having some trouble adapting to the fast-paced auto market changes in the U.S. From flip-flopping tariffs to the exodus of its sister brand, Polestar, there have been a ton of changes in a relatively short period of time that has been difficult for the Swedes to keep up with.

In its third-quarter earnings call last week, Volvo's leadership admitted that it was struggling to make its endeavors in the U.S. lucrative and that customer optimism in the brand has hit a point not seen in half a century.

"U.S. has proven to be a difficult market to find profitability," said Volvo's Chief Commercial Officer, Erik Severinson, during the company's third quarter earnings call last week. "The consumer sentiment in the U.S. [...] is at a 50-year low."

CEO Hakan Samuelsson said that one of Volvo's oversights was how tariffs would affect its business in the States. He admitted that the company "should have realized" that the tariffs were a real possibility and that they would need to "localize more in the U.S." to address them. The CEO went on to say that Volvo is working to address those tariff-related shortcomings to help strengthen its position in the market.

One of the long-standing ways that Volvo anticipated reversing its sales slump was with the EX60. However, the electric SUV meant to compete with the likes of the BMW iX3 and Mercedes-Benz GLC Electric has proven to be a manufacturing challenge. And with EV sales continuing to boom in Europe and other global electrification hotspots, Americans hoping to get an EX60 in their driveway will be waiting longer than originally anticipated while Europe is prioritized.

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