Volvo Sales Fall 12% in 2026 as Dealers Demand Change

Volvo sales in the U.S. are down 12% through the first half of 2026, following a particularly difficult first quarter. The automaker is now focusing on improving dealer satisfaction, refining its sales programs and addressing product issues as it looks to reverse the decline. A Difficult Start to 2026 After a strong start in 2021…

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Volvo sales in the U.S. are down 12% through the first half of 2026, following a particularly difficult first quarter. The automaker is now focusing on improving dealer satisfaction, refining its sales programs and addressing product issues as it looks to reverse the decline.

A Difficult Start to 2026

After a strong start in 2021 and 2022 and steady sales in 2024 and 2025, Volvo has struggled in the U.S. this year. First-quarter sales plunged 32% compared with the same period last year.

Sales improved slightly in the second quarter, but the recovery was not enough to offset the earlier decline. By the halfway point of 2026, Volvo’s total U.S. sales remained down 12%.

To prevent the decline from developing into a difficult downward trend, Volvo’s main focus is improving its relationship with the dealers responsible for selling its vehicles.

Volvo Plans to Improve Dealer Satisfaction

In the National Automobile Dealers Association’s 2026 Winter Dealer Attitude Survey, Volvo ranked 24th among 32 brands. Automotive News reviewed the survey, and Volvo has acknowledged that it needs to improve its performance with dealers.

Scott Doering, who is responsible for Volvo’s U.S. dealer network, spoke to the publication about the steps needed to rebuild satisfaction across the dealer network.

“We’re not happy with where we’re performing as a brand. We need to be better at getting a pulse of the issues that are in the dealer network, and that survey specifically is a fantastic mechanism to get a temperature of the network,” said Doering.

As part of the effort, Volvo plans to make changes to sales programs that have frustrated dealers. Doering acknowledged that the company had repeatedly adjusted its offers instead of establishing them properly from the beginning.

“Rather than sort of judging what the offer needs to be up front, we were repeatedly making adjustments, and that just doesn’t work well from a dealer operation standpoint,” the executive added.

Volvo Also Targets Product Issues

Improving dealer satisfaction is only part of Volvo’s plan. The company also needs to ensure its vehicles provide a better experience for customers, and Doering acknowledged that some models have experienced teething issues.

One area Volvo wants to address is its use of over-the-air updates. The goal is to reduce the number of updates by getting things right the first time.

Volvo intends to apply that approach to future vehicle offerings. If successful, the company could improve its position in reliability rankings. In last year’s Consumer Reports reliability rankings, Volvo placed 15th out of 26 brands.

The XC60 Will Be a Key Test

Volvo also has a slate of new vehicles coming, with the company hoping they will deliver better initial quality than previous models. Among them, the heavily updated XC60 will be particularly important because it is the brand’s best-selling model.

For Volvo, the focus will extend beyond improvements listed on a vehicle’s specification sheet. The company will also need to deliver a stronger overall ownership experience as it works to address dealer concerns and improve its sales performance.

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