Mikael Sjoberg | Bloomberg | Getty Photographs
Swedish-based automaker Volvo Automobiles on Tuesday introduced cost-cutting plans of 18 billion Swedish krona ($1.87 billion) as its working revenue fell sharply within the first three months of the 12 months.
Volvo Automobiles, which is owned by China’s Geely Holding, reported first-quarter working revenue of 1.9 billion krona, down from 4.7 billion krona in the identical interval final 12 months.
The corporate mentioned the outcomes replicate a drop in wholesales as a part of a deliberate stock discount in the course of the closing three months of 2024, opposed foreign money results and broader automotive business turbulence.
Volvo Automobiles mentioned its so-called “value and money motion plan” would come with reductions in investments and redundancies at its operations throughout the globe. The corporate didn’t present additional info on the potential scale of the layoffs however mentioned it might replace with “extra particulars as quickly as doable.”
Volvo Automobiles mentioned it’s now not offering monetary steering for each 2025 and 2026.
“There’s a relatively heavy headwind available on the market, Volvo Automobiles CEO Håkan Samuelsson advised CNBC’s “Europe Early Version” in a Tuesday interview.
“There’s a quantity drop, and on prime of that additionally value competitors, new gamers within the electrical section, particularly these influencing costs typically. And on prime of that you’ve the turbulence now with further tariffs, so all of that makes it very tough to foretell the longer term.”
Samuelsson added that the corporate was specializing in what it may well management through the fee motion package deal.
U.S. President Donald Trump imposed 25% tariffs on vehicles imported to the U.S. earlier this month. The White Home has mentioned it additionally plans to position tariffs on some auto elements similar to engines and transmissions, that are set to take impact no later than Could 3.
“The automotive business is in the course of a really tough interval with challenges not seen earlier than,” Håkan Samuelsson, Volvo Automobiles CEO, mentioned in a press release.
“Whereas we nonetheless have lots to do, our path going ahead is concentrated on three areas: profitability, electrification and regionalization,” he added.
— CNBC’s Jenni Reid contributed to this report.
