AI Image
Volvo Cars stock falls 26% amid China, U.S. slump and fresh job cuts
CNBC • • business
Key Points:
- Volvo Cars plans to cut 2,500 jobs globally, including 2,000 in Sweden, after reporting a third-quarter operating loss of 5.6 billion Swedish kronor ($563.7 million), down from a previous profit of 6.4 billion kronor.
- The company attributed the loss to a sharp decline in its Chinese market, where revenues fell nearly 50% year-on-year due to increased competition from domestic rivals and changing consumer preferences.
- CEO Håkan Samuelsson emphasized the need for a new, regionally adapted strategy in China, including sharing platforms with parent company Geely and developing key software locally to remain competitive.
- In the U.S., Volvo Cars faced pressure on profit margins from tariffs and reduced customer incentives for electric vehicles.
- To address these challenges, Volvo aims to cut 5 billion kronor in costs and restructure with a leaner central administration and stronger regional empowerment.
