Latest news with #MarieMannes
Yahoo
27-05-2025
- Automotive
- Yahoo
Volvo Cars to slash 3,000 jobs in white-collar cutback
By Marie Mannes and Anna Ringstrom STOCKHOLM (Reuters) -Volvo Cars 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 trade uncertainty, it said on Monday. The layoffs come as the Swedish automaker tries to resurrect its rock-bottom share price and drum up better demand for its cars by restructuring part of its business and cutting costs. CEO Hakan Samuelsson, who was recently brought back to the role after heading the company for a decade until 2022, unveiled a programme in April to slash costs by 18 billion Swedish crowns ($1.9 billion), including a substantial cut to its white-collar staff, who make up 40% of its workforce. "It's white collar in almost all areas, including R&D, communication, human resources," Samuelsson told Reuters on Friday, "So it's everywhere, and it's a considerable reduction." "I think it will be very healthy, and will save us money and give space for people to (take on) bigger responsibilities." Volvo Cars' new CFO Fredrik Hansson told Reuters that while all of its departments and locations would be impacted, most of the redundancies will happen in Gothenburg. "It's tailored to make us structurally more efficient, and then how that plays out might vary a bit depending on the area. But no stone is left unturned," Hansson said. The layoffs represent around 15% of the company's office staff, Volvo Cars said in a statement, and would incur a one-time restructuring cost of 1.5 billion crowns. With most of its production based in Europe and China, Volvo Cars is more exposed to new U.S. tariffs than many of its European rivals, and has said it could become impossible to export its most affordable cars to the U.S. The company said in a press release that it would finalise a new structural set-up by the autumn of this year. Handelsbanken analyst Hampus Engellau said the number of staff to be laid off was in line with expectations, and that the company's move to streamline its operations was positive. The group withdrew its financial guidance as it announced its cost cuts last month, 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. Volvo Cars' shares were up 3.6% by 1339 GMT on Monday, with most of the rise coming before the layoff announcement. They are still down 24% year-to-date. ($1 = 9.4829 Swedish crowns) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Automotive
- Yahoo
Volvo Cars to cut 5% of jobs at South Carolina plant as tariffs bite
STOCKHOLM (Reuters) -Volvo Cars said on Wednesday it would make production changes and cut 5% of the workforce at its Charleston plant in the United States due to changing market conditions and evolving trade policies, including tariffs. A spokesperson for Volvo Cars said the changes would affect about 125 of the 2,500 employees at its factory in South Carolina. It was not immediately clear which positions would be affected or how the cuts would affect production at the plant in Charleston. Volvo Cars, which is majority-owned by China's Geely Holding, said it remained committed to creating 4,000 jobs in South Carolina and that it still planned to boost output there in the future. It added in an emailed statement that the cuts were not included in the upcoming redundancies flagged alongside its earnings for the first quarter last week, when it said it would slash costs by 18 billion Swedish crowns ($1.88 billion). Volvo Cars declined to comment on when it would be able to disclose more details around the upcoming job cuts. The carmaker said the United States remained a key part of its long-term strategy and that it was focused on sharpening its U.S. product line-up and manufacturing. Volvo Cars has nearly 43,000 employees globally according to its 2024 annual report. Some 29,000 are in Europe, around 10,000 in Asia and 3,000 in the Americas region. While the Charleston factory has a capacity to produce 150,000 cars annually, it currently only makes the EX90 electric SUV and Polestar's model 3 with most cars imported from Europe. In an April retail sales update the company said it had sold 1,316 EX90s in the U.S. year to date. ($1 = 9.5804 Swedish crowns) (Reporting by Marie Mannes; Editing by Louise Breusch Rasmussen, Tomasz Janowski and Kate Mayberry)
Reuters
07-05-2025
- Automotive
- Reuters
Volvo Cars to cut 125 jobs at US plant in South Carolina
STOCKHOLM, May 7 (Reuters) - Volvo Cars ( , opens new tab said on Wednesday it would make production changes and cut 5% of the workforce at its Charleston plant in the United States due to changing market conditions and evolving trade policies, including tariffs. A spokesperson for Volvo Cars said the changes would affect 125 of the 2,500 employees at its plant in South Carolina. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. The company said in an emailed statement that the cuts were not included in the redundancies announced together with its earnings for the first quarter last week, when it said it would slash costs by 18 billion Swedish crowns ($1.88 billion). Advertisement · Scroll to continue Volvo Cars said it remained committed to its long-term future in the United States and that it was balancing investments with the need to reduce costs. ($1 = 9.5804 Swedish crowns) Reporting by Marie Mannes, editing by Louise Breusch Rasmussen and Tomasz Janowski Our Standards: The Thomson Reuters Trust Principles. , opens new tab Share X Facebook Linkedin Email Link Purchase Licensing Rights
Yahoo
10-04-2025
- Automotive
- Yahoo
EV maker Polestar bids to lure disgruntled Tesla owners with discounts
By Zaheer Kachwala and Marie Mannes (Reuters) - Polestar is offering discounts of up to $20,000 towards a lease of its Polestar 3 vehicle for current Tesla owners in the United States, as the Swedish EV maker targets drivers shunning CEO Elon Musk's car brand. The campaign on Polestar's website appears to be an attempt by the company to lure disgruntled Tesla customers with the discounts amid slower-than-expected EV demand and worries that higher tariffs may raise vehicle prices. A long range, dual motor Polestar 3 with all the upgrade packs would cost around $93,000, the website says, but for Tesla owners using the discounts, the price would sink to $73,000. A Tesla Model S starts at just under $80,000. "We piloted a conquest campaign in late February. Based on the positive response we ran a new campaign for the month of March. We are currently running a similar campaign for April," a spokesperson of Polestar told Reuters. The offer is valid for its Polestar 3, which is produced in a Volvo Cars factory in South Carolina. Tesla's stock has dropped 32% so far this year from poor sales and record Tesla trade-ins amid criticism of Musk due to the billionaire's controversial role in the Trump administration as he works to slash federal government spending. POTENTIAL PRICE RISE Polestar joins a throng of automakers scrambling for market share as shoppers in the U.S. and beyond scour dealer lots to try to snap up a car purchase before any potential rise in prices from the higher U.S. tariffs. Ford Motor and Stellantis offered deep discounts starting this month, and Hyundai committed to keeping prices stable. Polestar has been trying to expand its production base in the United States and reduce dependence on China - a strategy more significant now after U.S. President Donald Trump imposed sweeping tariffs on the world's largest auto market. Indeed, both U.S. and other automakers are trying to enhance their manufacturing footprint. General Motors last week told workers it would increase output at a factory in Indiana, and Hyundai committed to a $21 billion investment in the U.S. Polestar said earlier campaigns had been positive. "The numbers speak for themselves. This week saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible," Jordan Hofmann, Polestar's head of sales in the U.S., said in a LinkedIn post a month ago. The company did not provide additional details or quantify the impact of the previous promotion. U.S. EV maker Lucid also hopped on the trend, offering discounts of up to $4,000 for purchases of its luxury Air sedans if a customer trades in a Tesla vehicle. For Polestar, backed by China's Geely, boosting sales is crucial as it burns through cash to hike production. Last year, it underwent an executive shakeup and appointed a new CEO with the aim of getting closer to profitability, raising sales and securing a steady line of funding. Sign in to access your portfolio
Yahoo
13-03-2025
- Automotive
- Yahoo
Europe's would-be battery champion Northvolt files for bankruptcy
By Marie Mannes STOCKHOLM (Reuters) -Battery cell maker Northvolt has filed for bankruptcy in Sweden, the company said on Wednesday, marking one of the country's largest corporate failures and effectively ending Europe's best hope of developing a rival to challenge China. "This was a decision we did not take lightly" and it was the only "realistic path forward," Northvolt Chairman Tom Johnstone told a press conference, saying every avenue had been pursued to avoid bankruptcy for the company, which puts 5,000 jobs at risk. The EV battery maker sought U.S. Chapter 11 bankruptcy protection in November as its cash pile dwindled and it scrambled to secure funds to fix problems boosting output at its flagship plant in northern Sweden. Its debt stood just over $8 billion across the Northvolt entities entering bankruptcy, U.S. chapter 11 documents showed. The bankruptcy is one of the biggest in Swedish corporate history, and the most high-profile since carmaker Saab Automobile more than a decade ago. It is a huge blow to Sweden's north, particularly the small town of Skelleftea, home to the Northvolt Ett factory. Europe's auto sector had hoped Northvolt would reduce Western carmakers' reliance on Chinese rivals such as battery maker CATL and EV and battery maker BYD. 'A LOT GONE WRONG' "It's obvious that a lot has gone wrong, and the price is now being paid by our members," Marie Nilsson, leader of the IF Metall union said in a statement. The Swedish company has received more than $10 billion in equity, debt and public financing since its 2016 inception, and its biggest owners include Volkswagen with a 21% stake, and Goldman Sachs, with 19%. Northvolt's operations in North America and Germany were not filing for bankruptcy in their jurisdictions, the company said, and neither was its Polish unit, an internal document showed. Canada's Industry Minister Francois-Philippe Champagne said the Canadian government was in talks to help find a buyer for Northvolt's plant in Quebec. German Economy Minister Robert Habeck said he hoped Northvolt might still be rescued by an investor who could secure the future of its planned German plant. The bankruptcy will impact Northvolt's flagship plant in Skelleftea, where a green industry boom had created thousands of jobs, many of which were now in jeopardy. "It is important to emphasize that what is now affecting Skelleftea in the short term will affect Sweden and Europe much more severely," Skelleftea Mayor Lorents Burman said. Northvolt last year clinched a $5 billion green loan deal to expand a plant, but funding was cancelled as its problems mounted, including raising output at its Skelleftea factory. Sweden's Deputy Prime Minister Ebba Busch said the government stood ready to support Northvolt employees, and she hoped "the business will be able to find a new long-term owner". Porsche, which had supply contracts with Northvolt, said it had begun searching for alternatives after news of the bankruptcy filing. Volkswagen said it remained in contact with Northvolt but declined to comment further on the bankruptcy. Several shareholders have in recent months written down the value of their Northvolt stakes to zero, while long-time partner Scania said it had lined up a new supply of battery cells. German carmaker BMW cancelled a $2 billion order in June after Northvolt failed to deliver on a long-term contract. LOSS FOR SWEDISH INDUSTRY Co-founder Peter Carlsson, who stepped down as Northvolt CEO shortly after the Chapter 11 filing in November, has said the company needed up to $1.2 billion to restore its business. "What ultimately forced the board to take this decision last night was that it did not see a solution to the short term liquidity need," Carlsson told reporters on Wednesday. Creditors include both private and public investors. The bankruptcy was "a loss for Sweden's industry and social economy, and above all for Skelleftea, Northvolt and its employees," said Jenny Askfelt Ruud, who chairs 4 to 1 Investments which has invested 5.8 billion Swedish crowns ($578 million) in Northvolt shares and convertibles. A court-appointed trustee will oversee the bankruptcy process, which will include the sale of Northvolt's assets and settling its outstanding obligations as far as possible. ($1 = 10.0405 Swedish crowns) Sign in to access your portfolio
