Latest news with #HakanSamuelsson
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.
Independent Singapore
27-05-2025
- Automotive
- Independent Singapore
Volvo slashes 3,000 jobs amid industry turmoil and mounting global uncertainty
STOCKHOLM: Volvo Cars is slashing 3,000 white-collar jobs in a comprehensive reorganization effort aimed at cutting costs and resuscitating its stressed share price, the Swedish automaker announced on Monday, according to a recent Reuters report. Confronted with escalating business expenditures, lukewarm demand for electric vehicles, and imminent trade uncertainties, particularly in the United States, Volvo states that the job cuts are part of a broader strategy to modernize its international operations. The firm, renowned for its Scandinavian design and safety-first manufacturing, aims to save 18 billion Swedish crowns (approximately S$1.9 billion). CEO Hakan Samuelsson, who had been absent for two years and is now back at the helm, first announced the cost-cutting policy in April. 'This is a significant reduction across almost all white-collar departments—R&D, communications, HR—you name it,' Samuelsson said. 'It will be healthy for the company in the long run. It gives people the opportunity to take on broader responsibilities.' The dismissals will touch approximately 15% of Volvo's office-based personnel and will sustain a one-time reorganization cost of 1.5 billion crowns. While all divisions and international sites will be affected, CFO Fredrik Hansson noted that Gothenburg, the car manufacturer's headquarters and control center, will experience the largest number of job cuts. 'We're looking at structural efficiency across the board. No stone is left unturned,' Hansson said. Volvo's problems are intensified by its exposure to global trade pressures, mainly the tariffs that the U.S. will impose, where the firm worries that it may no longer be able to viably distribute its lower-cost models. With many of its manufacturing positioned in Europe and China, Volvo could be hit harder than some of its European counterparts if trade barricades escalate. The firm aims to conclude a new business structure by autumn. Notwithstanding Monday's ugly update, Volvo shares increased 3.6% by early afternoon GMT, although predictors noted that most of the increase came earlier than the downsizing statement. Handelsbanken expert Hampus Engellau said the scale of the reductions met market outlooks and indicated a positive move to future-proof the business. Volvo just extracted its financial direction amid explosive market environments, citing weaker buyer confidence and erratic tariff moves. Last week, U.S. President Donald Trump warned that impose a 50% tariff on EU car imports beginning Jun 1, before deferring the time limit to Jul 9 to permit additional consultations with Brussels. As worldwide burdens intensify, Volvo's management is confident that lean operations structure and a closer focus on efficiency will direct the car manufacturer through tempestuous times.
Daily Mail
27-05-2025
- Automotive
- Daily Mail
Volvo to slash 15% of its workforce
Published: | Volvo will cut 3,000 jobs as it battles against the slowdown of electric vehicle sales across the globe. The Swedish car giant revealed this morning 15 percent of its office workforce will be impacted, with the majority of those hitting white-collar jobs in the Scandinavian country. It forms part of a £1.4bn cost-saving strategy Volvo announced earlier this month in order to 'offset external headwinds' caused by the decline in EV sales, high costs and global trade uncertainty. Calling Monday's actions 'difficult decisions' made to 'build a stronger and more resilient Volvo,' Hakan Samuelsson, chief executive, said: '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. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.' Owned by China's Geely Holding Group with production in both China and Europe, Volvo has been highly exposed to the 25 percent tariffs introduced in the US by President Trump on imported cars. Volvo confirmed its annual electric car sales plummet 11 percent in April, with sales of its electrified models – fully electric and plug-in hybrids – falling 16 percent compared to the same period last year. Volvo has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China. As of 2024, Volvo employs roughly 44,000 employees globally, with nearly 20,000 being 'white-collar' workers. Telling Reuters that cuts are 'everywhere' and 'considerable' Samuelsson confirmed: 'It's white-collar in almost all areas, including R&D, communication, human resources. 'I think it will be very healthy, and will save us money and give space for people to (take on) bigger responsibilities.' Samuelsson was reappointed as chief executive on 30 March after the end of Scotsman Jim Rowan's three-year tenure following a rocky period of EV sales. Volvo is one of the car makers to have invested most in the EV transition, as it was one of the first to offer an electrified version of every model in its range. In 2021, Volvo said all of its cars would go electric by 2030, before U-turning on that last year after admitting it needed to scale back the ambitious deadline due to a number of issues including 'additional uncertainties created by recent tariffs on EVs in various markets'. In its latest sales report from April, Volvo confirmed that its share of fully electric cars constituted 20 percent of all cars sold for the month while the share of plug-in hybrid models accounted for 25 percent. Fully electric sales were down 32 percent from April 2024. While poor EV uptake has hit Volvo just like many other manufacturers, Samuelsson said it could become impossible to import the smallest cars in the company's line-up to the US due to the new tariffs. On Friday Donald Trump said he was recommending a straight 50 percent tariff on goods from the European Union starting June 1, saying the EU has been hard to deal with on trade. Samuelsson told Reuters a 50 percent tariff would limit the ability of Volvo to sell its Belgium-made EX30 electric vehicle in the US and customers would have to pay a large part of the tariff-related cost increases.
Daily Mail
27-05-2025
- Automotive
- Daily Mail
Volvo to slash 15% of its workforce thanks to low EV demand
Volvo will cut 3,000 jobs as it battles against the slowdown of electric vehicle sales across the globe. The Swedish car giant revealed this morning 15 per cent of its office workforce will be impacted, with the majority of those hitting white-collar jobs in the Scandinavian country. It forms part of a £1.4bn cost-saving strategy Volvo announced earlier this month in order to 'offset external headwinds' caused by the decline in EV sales, high costs and global trade uncertainty. Calling Monday's actions 'difficult decisions' made to 'build a stronger and more resilient Volvo,' Hakan Samuelsson, chief executive, said: '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. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.' Owned by China's Geely Holding Group with production in both China and Europe, Volvo has been highly exposed to the 25 per cent tariffs introduced in the US by President Trump on imported cars. Volvo confirmed its annual electric car sales plummet 11 per cent in April, with sales of its electrified models – fully electric and plug-in hybrids – falling 16 per cent compared to the same period last year. Volvo has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China. As of 2024 Volvo employs roughly 44,000 employees globally, whith nearly 20,000 are 'white-collar' workers. Telling Reuters that cuts are 'everywhere' and 'considerable' Samuelsson confirmed: 'It's white-collar in almost all areas, including R&D, communication, human resources. 'I think it will be very healthy, and will save us money and give space for people to (take on) bigger responsibilities.' Samuelsson was reappointed as chief executive on 30 March after the end of Scotsman Jim Rowan's three-year tenure following a rocky period of EV sales. Volvo is one of the car makers to have invested most in the EV transition, as it was one of the first to offer an electrified version of every model in its range. In 2021, Volvo said all of its cars would go electric by 2030, before U-turning on that last year after admitting it needed to scale back the ambitious deadline due to a number of issues including 'additional uncertainties created by recent tariffs on EVs in various markets'. In its latest sales report from April, Volvo confirmed that its share of fully electric cars constituted 20 per cent of all cars sold for the month while the share of plug-in hybrid models accounted for 25 per cent. Fully electric sales were down 32 per cent from April 2024. While poor EV uptake has hit Volvo just like many other manufacturers, Samuelsson said it could become impossible to import the smallest cars in the company's line-up to the US due to the new tariffs. On Friday Donald Trump said he was recommending a straight 50 per cent tariff on goods from the European Union starting June 1, saying the EU has been hard to deal with on trade. Samuelsson told Reuters a 50 per cent tariff would limit the ability of Volvo to sell its Belgium-made EX30 electric vehicle in the US and customers would have to pay a large part of the tariff-related cost increases. But despite the threats of rising tariffs, Samuelsson said he was hopeful Europe and the US will soon come to an agreement. '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,' Samuelsson commented. This is Money has contacted Volvo UK for comment.
India Today
27-05-2025
- Automotive
- India Today
Volvo to slash 3,000 white-collar jobs in restructuring move: Report
Volvo Cars has decided to cut around 3,000 office jobs as part of a major cost-saving plan. The Swedish carmaker is facing rising costs, weaker demand for electric vehicles (EVs), and trade uncertainties, reported decision comes just weeks after the company's former CEO, Hakan Samuelsson, returned to lead Volvo again. In April, he shared a plan to reduce expenses by 18 billion Swedish crowns (about $1.9 billion).advertisementA major portion of the cost-cutting will come from trimming white-collar roles, which account for around 40% of the company's total staff. Globally, the company has about 29,000 employees in Europe, 10,000 in Asia, and 3,000 in the Americas. Samuelsson said the job cuts will happen across different departments, like research, human resources, and Car's new finance chief, Fredrik Hansson, added that while all parts of the business will be affected, most of the job losses will be in Gothenburg, to Volvo Cars, nearly 15% of its office employees will be laid off, with the move expected to cost 1.5 billion crowns in restructuring charges. However, the move will help make its structure more efficient, said the of the key concerns for Volvo right now is trade tensions, especially with the US. Since most of its cars are made in Europe and China, new US tariffs could hit Volvo harder than other European brands. The company even warned it might not be able to sell some of its more affordable cars in the US if duties go plans to complete its new business structure by autumn this year. According to analyst Hampus Engellau from Handelsbanken, the job cuts were expected, and the move could help the company become leaner and more focused in the long
