by Marie Mannes

STOCKHOLM (Reuters) – Volvo Cars soared on the Stockholm Stock Exchange on Thursday as the automaker reported better-than-expected quarterly results as accelerated cost cuts offset the effects of tariffs and increased competition.

The stock of the company, based in Sweden but majority owned by the Chinese group Geely Holding, soared by more than 30% around 08:05 GMT.

The group reported an operating profit before exceptional costs of 5.9 billion Swedish crowns (540.9 million euros) for the period from July to September, shattering analysts’ forecasts which were counting on 1.6 billion crowns, according to a consensus cited by Bernstein.

The automaker’s gross margin increased to 24.4% from the previous quarter’s rate of 17.7%.

This performance is linked to the renewal of the best-selling XC60 model, significant savings from cooperation with Geely’s supply chain and cost reductions, CEO Hakan Samuelsson told Reuters.

“What we’re seeing now is that the results are coming faster than we thought and than we had planned,” he added of the cost reductions.

Hakan Samuelsson, who led Volvo Cars for more than a decade, was recalled as head of the company this year. Since then, he has appointed a new financial director, announced 3,000 job cuts, lowered profit forecasts and slowed investments.

Volvo Cars is one of the European automakers most exposed to tariffs introduced by Donald Trump’s administration, with most of its vehicles destined for the United States being exported from Europe.

However, the manufacturer recently took steps to transfer production of certain hybrid vehicles to America in the coming years.

(Written by Marie Mannes; Blandine Hénault; edited by Augustin Turpin)

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