Swedish auto big Volvo Automobiles reported on Tuesday that it will be slashing 18 billion krona (€1.7bn) price of prices, following its working revenue for the primary quarter of the 12 months 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 12 months, down from 93.9bn krona (€8.6bn) in the identical quarter final 12 months. Earnings earlier than curiosity and taxes (EBIT) margin got here as much as 2.3% within the first three months of the 12 months, 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 international auto trade turbulence, in addition to fluctuating international forex additionally had an affect on the primary quarter outcomes.
Volvo Automobiles shared that its “price and money motion plan”, as this cost-cutting drive is being known as, will embody decreases in investments, in addition to worldwide redundancies. Nonetheless, no different particulars have been revealed about what number of layoffs might occur.
The corporate revealed that it will be focusing extra on its US merchandise to boost development and look into the way it can optimise its present manufacturing services within the US. That is as a way to finally produce extra US-sold automobiles inside the nation.
It additionally revealed that it will not be sharing monetary outlooks for each this 12 months and subsequent 12 months anymore. That is primarily due to the issue of precisely predicting enterprise efficiency in an more and more unstable financial and geopolitical surroundings, particularly with US tariffs.
Trump’s looming 25% tariffs on automotive imports is one other regarding issue for Volvo Automobiles in the meanwhile, together with the US’s upcoming 25% tariffs on sure auto elements. Nonetheless, Volvo Automobiles’ share value dropped 0.5% round 12:15pm CEST on the Nasdaq Stockholm alternate.
