Volvo Cars warns of weaker sales, cash flow

Volvo Cars said it will not meet its previously stated full-year outlook for volume and cash flow, citing a more difficult market environment and a deteriorating near-term picture. In a statement on Friday, the Sweden-based automaker said sales were lower than expected and that the company’s outlook for the year has weakened. The company pointed to worsening conditions in China and a slower-than-expected recovery in the United States as the primary drivers of the decline. It added that Europe remains resilient. The update follows Volvo’s earlier guidance but indicates management has revised expectations as demand softens in key markets. Reporting by Anna Ringstrom, edited by Terje Solsvik.