Latest news with #VolvoCars'
Yahoo
6 days ago
- Automotive
- Yahoo
Volvo Cars sales plunge 12% in May as tariff challenges continue
Volvo Cars announced worldwide sales of 59,822 cars in May, which was a decrease of 12% compared with the same month in 2024. This was partly due to the company struggling with recently imposed US automotive tariffs. Electrified models — both plug-in hybrids and fully electric vehicles — made up 44% of all car sales in May. This was a fall from 66% in May 2024. While fully electric models made up 21% of all May sales, plug-in hybrid models accounted for 23%. The best-selling model in May was the XC60, which sold 19,408 units — a slight dip from the 20,507 units sold in the same month last year. The XC40/EX40 model took second place, with 14,892 units sold — an increase on May 2024's 13,640 units. The third best-selling model was the XC90 with 8,794 units sold in May 2025. By contrast, 9,072 units of this model were sold in May 2024. As of December 2024, Volvo Cars had about 42,600 full-time employees, with its head office based in Gothenburg, Sweden, and production plants across the US, Belgium and in China. Volvo Cars also recently announced that it would be slashing 3,000 jobs, as part of wide-ranging cost-cutting measures, which are expected to save the company about SEK 18 billion (€1.6bn). These layoffs will primarily affect office-based positions in Sweden, which make up around 15% of Volvo Cars' white collar workforce. Out of these 3,000 layoffs, around 1,000 will be consultant positions. Earlier in May, the company laid off 5% of its staff in its Ridgeland, South Carolina facility, which accounted for 125 roles. Volvo Cars said in a press release about the redundancies on its website: 'These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth. 'Volvo Cars remains firm on its ambition of becoming a fully electric car company, as fully electric is the fastest growing market segment and Volvo Cars is a leader in this transition.' Back in 2021, the company revealed that all its models would be electric by the end of the decade. However, it has pushed back this goal, citing rising uncertainties due to electric vehicle (EV) tariffs in many markets. Apart from tariffs, slower European sales and the higher cost of materials have also affected several major car companies in Europe. Nissan, Ford, General Motors, Volkswagen, Tesla and Stellantis have all announced layoffs in the last few months, as car companies scramble to become more efficient and adaptive in the current uncertain economic environment. 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
Euronews
6 days ago
- Automotive
- Euronews
Volvo Cars sales plunge 12% in May as tariff challenges continue
Volvo Cars announced worldwide sales of 59,822 cars in May, which was a decrease of 12% compared with the same month in 2024. This was partly due to the company struggling with recently imposed US automotive tariffs. Electrified models — both plug-in hybrids and fully electric vehicles — made up 44% of all car sales in May. This was a fall from 66% in May 2024. While fully electric models made up 21% of all May sales, plug-in hybrid models accounted for 23%. The best-selling model in May was the XC60, which sold 19,408 units — a slight dip from the 20,507 units sold in the same month last year. The XC40/EX40 model took second place, with 14,892 units sold — an increase on May 2024's 13,640 units. The third best-selling model was the XC90 with 8,794 units sold in May 2025. By contrast, 9,072 units of this model were sold in May 2024. As of December 2024, Volvo Cars had about 42,600 full-time employees, with its head office based in Gothenburg, Sweden, and production plants across the US, Belgium and in China. Volvo Cars also recently announced that it would be slashing 3,000 jobs, as part of wide-ranging cost-cutting measures, which are expected to save the company about SEK 18 billion (€1.6bn). These layoffs will primarily affect office-based positions in Sweden, which make up around 15% of Volvo Cars' white collar workforce. Out of these 3,000 layoffs, around 1,000 will be consultant positions. Earlier in May, the company laid off 5% of its staff in its Ridgeland, South Carolina facility, which accounted for 125 roles. Volvo Cars said in a press release about the redundancies on its website: 'These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth. 'Volvo Cars remains firm on its ambition of becoming a fully electric car company, as fully electric is the fastest growing market segment and Volvo Cars is a leader in this transition.' Back in 2021, the company revealed that all its models would be electric by the end of the decade. However, it has pushed back this goal, citing rising uncertainties due to electric vehicle (EV) tariffs in many markets. Apart from tariffs, slower European sales and the higher cost of materials have also affected several major car companies in Europe. Nissan, Ford, General Motors, Volkswagen, Tesla and Stellantis have all announced layoffs in the last few months, as car companies scramble to become more efficient and adaptive in the current uncertain economic environment.
Yahoo
28-05-2025
- Automotive
- Yahoo
Volvo Cars to slash 3,000 workers amid global trade uncertainty
Sweden-based automaker Volvo Cars said it is eliminating 3,000 white-collar jobs at operations around the world as the automotive industry faces supply chain and tariff-related disruptions. The layoffs represent around 15% of Volvo Cars' office staff, with about 2,200 job losses expected to occur in Sweden and the rest in the company's global operations. Volvo Cars has not said where the other workforce reductions will take place. The job cuts announced Monday are part of a $1.88 billion action plan to bolster the company's long-term profitability, officials said.'The automotive industry is in the middle of a challenging period,' Håkan Samuelsson, president and CEO of Volvo Cars, said in a news release. 'To address this, we must improve our cash flow generation and structurally lower our costs.' Volvo Cars said the layoffs will be completed by the end of fall. As of the first quarter, the automaker had 42,600 full-time employees, with white-collar staff making up more than 40% of its workforce, according to its earnings report. Volvo Cars' head office, product development, marketing and administration functions are mainly located in company's car production plants are in Gothenburg; Ghent, Belgium; Charleston, South Carolina; and Chengdu, Daqing and Taizhou, China. The company also has research and development and design centers in Gothenburg and Shanghai. The latest round of layoffs comes after Volvo announced plans to eliminate 5% of its workforce, about 125 workers, at the Charleston factory, according to Reuters. The factory produces the company's EX90 SUV. Volvo Cars is majority-owned by China's Geely Holding. It was sold by Ford Motor Co. to Geely in 2010 for $1.8 billion. Volvo Cars and Volvo Trucks North America are separate entities. The post Volvo Cars to slash 3,000 workers amid global trade uncertainty appeared first on FreightWaves. Sign in to access your portfolio
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
Daily Mirror
27-05-2025
- Automotive
- Daily Mirror
Volvo Cars set to axe 3,000 jobs amid 'challenging period'
Volvo Cars, which is based in Gothenburg, Sweden but owned by Chinese company Geely Holding, said the automotive industry is facing a "challenging period" and must cope with several headwinds Volvo Cars is axing 3,000 jobs as part of cost-cutting measures. The automotive industry currently faces a number of challenges, including Donald Trump's 25% tariffs on imported cars, higher cost of materials and slower sales in Europe. So, Volvo Cars, owned by Chinese company Geely Holding, has said it must "structurally lower costs" in response to the tensions. Around 1,200 of the job reductions are likely to come among workers in Sweden, where Volvo Cars has its headquarters. Another 1,000 positions currently filled by consultants, mostly in Sweden, are also set for the chop. Håkan Samuelsson, chief executive of the company, said: "The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars. 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." The company, founded in 1927 in Gothenburg, Sweden, has 42,600 full-time employees. The firm says the layoffs will mainly impact office-based positions in the nation, representing about 15% of its white collar workforce. Geely Holding last month announced an 18 billion Swedish kronor ($1.9bn; £1.4bn) "action plan" shake-up of the business. Global sales for April fell by 11% compared to the same period last year. But the industry amid a number of challenges including higher costs for raw materials, a diminished European car market, and Mr Trump's imposition of 25% tariffs on imported cars and steel. Staff at Volvo Cars' major production plants in Sweden, Belgium, China and the US are not thought to be affected by the cuts. The office-based roles are, though, under threat, including in Sweden. In March 2021, Volvo Cars announced that it would be a fully electric brand by 2030, with vehicles sold exclusively online. In 2023, the company removed conventional engines as an option, meaning mild hybrids are the base engine option in the US. When Mr Trump, 78, announced his 25% tariff in March, it was thought British employment in car manufacturing was at risk. Reacting to Mr Trump's brutal vow, Andrew Griffith, the shadow trade secretary, had said British jobs are "clearly now at real risk" and he called the move "concerning". But the US leader had told reporters: "This will continue to spur growth. We'll effectively be charging a 25 per cent tariff." To underscore his seriousness about the tariffs directive he signed, Mr Trump said, 'This is permanent."
