Overview

• Volvo Cars is implementing an SEK 18 billion ($1.87 billion) cost-cutting plan, including layoffs and reduced investments, to stabilize its financial position.
• The company reported a 59% year-over-year decline in Q1 operating profit, falling to 1.9 billion krona, and a 6% drop in global vehicle sales.
• Volvo has suspended financial guidance for 2025 and 2026, citing uncertainty in market conditions and external pressures like U.S. tariffs and currency challenges.
• CEO Håkan Samuelsson emphasized a strategic shift toward profitability, electrification, and regionalized operations to navigate unprecedented industry turbulence.
• The restructuring will include a focus on key regions like the Americas and China, while scaling back priorities in Europe and other markets.