Overview

• Volvo Cars reported a sharp drop in Q1 operating profit to SEK 1.9 billion, down from SEK 4.7 billion a year earlier, citing reduced sales, currency challenges, and broader automotive industry pressures.
• The company launched an SEK 18 billion ($1.87 billion) cost-cutting plan, which includes layoffs, reduced investments, and cash flow improvements, with most impacts expected by 2026.
• CEO Håkan Samuelsson, reinstated after Jim Rowan's departure, is prioritizing profitability, electrification, and regionalized operations to adapt to evolving market needs and challenges.
• Volvo plans to enhance U.S. and China production autonomy to mitigate the impact of President Trump's 25% tariffs on imported cars and auto parts, while continuing to sell hybrids and combustion-engine vehicles alongside EVs.
• Collaboration with majority owner Geely is expected to unlock SEK 3 billion in synergies, including shared material costs and streamlined supplier use, to bolster Volvo's financial resilience.