Auto -producer launches a cost reduction plan by 1.9 billion

On Tuesday, Swedish Automobile Volvo Volvo announced Plans for cost reduction of 18 billion Swedish crane ($ 1.87 billion) since its operating profit decreased sharply in the first three months of the year.

Volvo Cars, owned by China Geely Holding, reported the profit in the first quarter of 1.9 billion Crohn, which compared to 4.7 billion Crohn in the same period last year.

The company said the results reflect the drop of wholesalers within the planned reduction of stocks over the last three months of 2024, adverse currency effects and wider turbulence of the automotive industry.

Volvo Cars said its so -called “value plan and monetary” will include a decrease in investment and dismissal in its activities around the world. The company did not provide additional information on the potential scale of layoffs, but stated that it would be updated “more details as soon as possible”.

Volvo Cars said it no longer provides financial recommendations for both 2025 and 2026.

US President Donald Trump has introduced 25% of car rates imported to the United States earlier this month. The White House said they also plan to place tariffs for some auto parts such as engines and gear, which should take effect no later than May 3.

“The automotive industry is in the middle of a very difficult period with problems that have not been seen before,” Volvo CEO said in a statement by Håkan Samuelsson.

“Although we still need to do a lot, our direction goes forward, focused on three areas: profitability, electrification and regionalization,” he added.

This broken news is updated.