Volvo Cars is set to strengthen its electric vehicle strategy in Europe by placing greater emphasis on the sales and expansion of Lynk & Co electric models, signalling a broader shift in how the company approaches the competitive European EV market.

Volvo Cars (VOLCARb.ST) announced on Monday that it has signed a memorandum of understanding with its Chinese sister company Geely Auto (0175.HK) to become the exclusive importer and distributor of Lynk & Co electric vehicles in Europe.

Volvo Cars sold 156,965 vehicles from December through February, a 10% drop compared with the same period last year.

Volvo Cars reported a sharp drop in fourth-quarter profit, as tariffs and weak market demand weighed on results, with the Sweden-based automaker warning on Thursday that external pressures remain a challenge.

Volvo Cars announced on Thursday that its new mid-sized electric SUV, launching later this month, will offer a driving range of up to 810 km (503 miles) on a single charge.

Sweden-based Volvo Cars sold 75,049 vehicles in December, marking a 2% increase compared with the same month last year.

Volvo Cars reported a modest increase in third-quarter profit on Thursday, with aggressive cost-cutting measures helping offset the effects of U.S. tariffs and intense market competition.

Volvo Cars announced plans to begin producing a new hybrid model in the United States by 2030, marking a significant step in the automaker’s North American strategy.

Volvo Cars sold 48,029 vehicles in August, a 9% decline compared to the same month last year, the Sweden-based company reported Thursday.