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Miami Herald
6 days ago
- Automotive
- Miami Herald
Volvo Responds to Tariffs with Mass Layoffs & EX30 Price Bump
As tariffs continue to cause uncertainty in the automotive industry, Volvo is cutting jobs and raising prices. Though tariffs have yet to be implemented by the United States government, Volvo is being proactive. Like many automakers, the automaker is taking steps to navigate an uncertain future, both in the short and long term. Volvo plans to cut approximately 3,000 jobs as part of its "cost and cash action plan," which, in part, aims to eliminate redundancies across the company. The automaker says it will eliminate approximately 1,000 consultants across its organization, 1,200 roles at offices in Sweden, and roughly 800 positions in its remaining global markets. The cuts represent about 15 percent of Volvo's total global workforce. When Volvo announced the EX30, it boldly claimed that the small SUV would arrive for $34,950-an incredible price point for any electric vehicle. Since that announcement, the U.S. government has imposed tariffs on electric vehicles (EVs) made in China, prompting Volvo to avoid importing EX30s built in China to the United States. To avoid tariff charges, Volvo ramped up production in Belgium. Now, a looming 50 percent tariff on European autos has caused Volvo to raise a white flag. Volvo CEO Hakan Samuelsson said on Friday that selling the automaker's Belgium-made EX30 stateside for the original $34,950 price tag would be "almost impossible" at this point. Thanks to tariffs, Volvo has raised the starting price of the EX30 to $46,195, as first reported by Reuters. The $46,195 price point seems curious because it's not a round number, but it appears to be grounded in logic. That new price represents a roughly 32 percent increase. Initially, the Trump administration proposed a 25 percent tariff on European goods, which has since been bandied as 50 percent. A 32 percent price increase appears to be Volvo hedging a bet that a 25 percent tariff is more likely than a 50 percent tariff, and that it will protect its profit margin if the tariffs are implemented. Most Volvo cars sold in the United States are imported from Europe. Samuelson, hopeful the EU and the U.S. can find common ground on trade, said, "I believe there will be a deal soon. It could not be in the interest of Europe or the U.S. to shut down trade between them." Tariffs are rattling several European automakers, not just Volvo. BMW recently halted its EV efforts in the United States, VW put a freeze on pricing to ease consumer fears, Nissan is drastically cutting back on production, Hyundai is cautioning dealerships about potential price increases, and Jaguar Land Rover has halted shipments of vehicles into the United States. Even the threat of tariffs has automakers on high alert. The industry is built on the back of a global supply chain, and creating a fully U.S.-based manufacturing and supply chain to avoid tariffs is likely impractical and impossible. Automakers are worried, but consumers are the ones paying the price-literally. Volvo has a large factory in Charleston, South Carolina, and says it'll ramp up production there. However, the plant doesn't currently manufacture fully electric vehicles, so we can expect to see more hybrids available on Volvo lots soon. Tariffs also interrupt the push toward full electrification. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
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Business Standard
26-05-2025
- Automotive
- Business Standard
Volvo Cars to cut 3,000 jobs amid EV slump, high costs and tariff woes
Sweden-based Volvo Cars said on Monday it will cut 3,000 mostly white-collar jobs as part of a restructuring announced last month as it grapples with high costs, a slowdown in electric vehicle demand and uncertainty over trade tariffs. Volvo Cars, which is majority-owned by China's Geely Holding , on April 29 unveiled a programme to slash costs by 18 billion Swedish crowns ($1.9 billion) and hit the brakes on investments, warning that redundancies were inevitable. In the first quarter, the auto maker had 43,500 full-time employees and 3,000 staffing agency personnel, according to its earnings report. Volvo Cars said in a statement the reductions will primarily affect office-based positions in Sweden and represent around 15 per cent of the total office-based workforce globally. "The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs," CEO Hakan Samuelsson said. As the group announced its cost cuts last month it also withdrew its financial guidance, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry. On Friday US President Donald Trump threatened to impose a 50 per cent tariff on imports from the European Union from June 1, but on Monday he backed away from that date, restoring a July 9 deadline to allow for talks between Washington and Brussels. Samuelsson on Friday told Reuters customers would pay a big part of any tariff-related cost increases, and that a 50 per cent levy could make it impossible to import one of its most affordable cars, the Belgium-made EX30 electric vehicle, to the US.
Business Recorder
26-05-2025
- Automotive
- Business Recorder
Volvo Cars to cut 3,000 jobs in restructuring
STOCKHOLM: Sweden-based Volvo Cars said on Monday it will cut 3,000 mostly white-collar jobs as part of a restructuring announced last month as it grapples with high costs, a slowdown in electric vehicle demand and uncertainty over trade tariffs. Volvo Cars, which is majority-owned by China's Geely Holding, on April 29 unveiled a programme to slash costs by 18 billion Swedish crowns ($1.9 billion) and hit the brakes on investments, warning that redundancies were inevitable. In the first quarter, the auto maker had 43,500 full-time employees and 3,000 staffing agency personnel, according to its earnings report. Volvo Cars said in a statement the reductions will primarily affect office-based positions in Sweden and represent around 15% of the total office-based workforce globally. 'The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs,' CEO Hakan Samuelsson said. Volvo Cars CEO says customers must pay for rising tariffs As the group announced its cost cuts last month it also withdrew its financial guidance, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry. On Friday U.S. President Donald Trump threatened to impose a 50% tariff on imports from the European Union from June 1, but on Monday he backed away from that date, restoring a July 9 deadline to allow for talks between Washington and Brussels. Samuelsson on Friday told Reuters customers would pay a big part of any tariff-related cost increases, and that a 50% levy could make it impossible to import one of its most affordable cars, the Belgium-made EX30 electric vehicle, to the U.S.
Business Times
26-05-2025
- Automotive
- Business Times
Volvo Cars to cut 3,000 jobs in restructuring
[STOCKHOLM] Sweden-based Volvo Cars said on Monday (May 26) it will cut 3,000 mostly white-collar jobs as part of a restructuring announced last month as it grapples with high costs, a slowdown in electric vehicle demand and uncertainty over trade tariffs. Volvo Cars, which is majority-owned by China's Geely Holding, on Apr 29 unveiled a programme to slash costs by 18 billion Swedish kronor (S$2.4 billion) and hit the brakes on investments, warning that redundancies were inevitable. In the first quarter, the auto maker had 43,500 full-time employees and 3,000 staffing agency personnel, according to its earnings report. Volvo Cars said in a statement the reductions will primarily affect office-based positions in Sweden and represent around 15 per cent of the total office-based workforce globally. 'The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs,' CEO Hakan Samuelsson said. As the group announced its cost cuts last month it also withdrew its financial guidance, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry. On Friday US President Donald Trump threatened to impose a 50 per cent tariff on imports from the European Union from Jun 1, but on Monday he backed away from that date, restoring a July nine deadline to allow for talks between Washington and Brussels. Samuelsson on Friday told Reuters customers would pay a big part of any tariff-related cost increases, and that a 50 per cent levy could make it impossible to import one of its most affordable cars, the Belgium-made EX30 electric vehicle, to the US. REUTERS
Time of India
26-05-2025
- Automotive
- Time of India
Volvo Cars to cut 3,000 jobs in restructuring
Sweden-based Volvo Cars said on Monday it will cut 3,000 mostly white-collar jobs as part of a restructuring announced last month as it grapples with high costs, a slowdown in electric vehicle demand and uncertainty over trade tariffs. Volvo Cars, which is majority-owned by China 's Geely Holding , on April 29 unveiled a programme to slash costs by 18 billion Swedish crowns ($1.9 billion) and hit the brakes on investments, warning that redundancies were inevitable. In the first quarter, the auto maker had 43,500 full-time employees and 3,000 staffing agency personnel, according to its earnings report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Live Comfortably: 60 m² Prefab Bungalow for Seniors in Beni Mellal Pre Fabricated Homes | Search Ads Search Now Undo Volvo Cars said in a statement the reductions will primarily affect office-based positions in Sweden and represent around 15% of the total office-based workforce globally. "The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs," CEO Hakan Samuelsson said. Live Events As the group announced its cost cuts last month it also withdrew its financial guidance, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry. On Friday U.S. President Donald Trump threatened to impose a 50% tariff on imports from the European Union from June 1, but on Monday he backed away from that date, restoring a July 9 deadline to allow for talks between Washington and Brussels. Samuelsson on Friday told Reuters customers would pay a big part of any tariff-related cost increases, and that a 50% levy could make it impossible to import one of its most affordable cars, the Belgium-made EX30 electric vehicle, to the U.S. ($1 = 9.4829 Swedish crowns)
