Swedish auto large Volvo Vehicles reported on Tuesday that it could be slashing 18 billion krona (€1.7bn) value of prices, following its working revenue for the primary quarter of the yr falling considerably.
The corporate, which is owned by China’s Geely Holding, recorded an working revenue of 1.9bn krona (€0.2bn) in Q1 2025, in distinction with 4.7bn krona (€0.4bn) within the corresponding interval in 2024.
Equally, income dropped to 82.9bn krona (€7.6bn) within the first quarter of this yr, down from 93.9bn krona (€8.6bn) in the identical quarter final yr. Earnings earlier than curiosity and taxes (EBIT) margin got here as much as 2.3% within the first three months of the yr, down from 5% in the identical interval in 2024.
The corporate has attributed these weaker figures to a fall in wholesales, primarily due to a deliberate lower in stock within the final quarter of 2024. Wider world auto trade turbulence, in addition to fluctuating international foreign money additionally had an affect on the primary quarter outcomes.
Volvo Vehicles shared that its “value and money motion plan”, as this cost-cutting drive is being referred to as, will embody decreases in investments, in addition to worldwide redundancies. Nevertheless, no different particulars have been revealed about what number of layoffs may occur.
The corporate revealed that it could be focusing extra on its US merchandise to reinforce development and look into the way it can optimise its present manufacturing services within the US. That is with a purpose to ultimately produce extra US-sold automobiles throughout the nation.
It additionally revealed that it could not be sharing monetary outlooks for each this yr and subsequent yr anymore. That is primarily due to the issue of precisely predicting enterprise efficiency in an more and more unstable financial and geopolitical setting, particularly with US tariffs.
Trump’s looming 25% tariffs on automotive imports is one other regarding issue for Volvo Vehicles in the intervening time, together with the US’s upcoming 25% tariffs on sure auto elements. Nevertheless, Volvo Vehicles’ share value dropped 0.5% round 12:15pm CEST on the Nasdaq Stockholm change.