Volvo Cars Announces Cost Reduction Measures Amid Profit Decline

Volvo Cars, headquartered in Sweden, has initiated a cost-cutting program amounting to 18 billion Swedish crowns ($1.87 billion). This action follows a substantial decline in operating profit due to challenging conditions in the automotive market.

The company, majority-owned by Geely of China, reported an operating profit of 1.9 billion Swedish crowns ($197.55 million) for the period of January to March. This figure is significantly lower compared to the 4.7 billion crowns reported in the same period last year.

The planned cost reductions will involve workforce reductions and a greater decrease in investment than initially anticipated. Furthermore, Volvo Cars has retracted its financial forecast for the upcoming two years.