Volvo Cars has announced a significant increase in its 2024 profits, driven by strong sales and operational efficiency. However, the Swedish automaker is considering relocating some of its manufacturing operations due to rising tariffs and geopolitical tensions.

The company reported a 15% year-on-year increase in net profit, attributing the growth to robust demand for its electric vehicles (EVs) and cost-saving measures. Volvo’s CEO, Jim Rowan, highlighted the company’s commitment to sustainability and innovation as key drivers of its success.

“Our focus on electrification and premium customer experiences has paid off,” Rowan said. “However, the increasing tariffs and trade barriers are forcing us to reevaluate our global supply chain and manufacturing footprint.”

Volvo is reportedly exploring options to move some production facilities to regions with more favorable trade conditions. This potential relocation could impact jobs in its current manufacturing hubs, but the company has assured stakeholders that it will prioritize a smooth transition.

Analysts have praised Volvo’s ability to adapt to market challenges while maintaining profitability. However, they caution that the company’s long-term success will depend on its ability to navigate the complex global trade landscape.