Due To Import Taxes, Volvo Automobiles Reduces Expenses And Employment

Volvo Cars is implementing a cost-cutting program and reducing jobs to mitigate the impact of U.S. import tariffs. The Swedish automaker, owned by Chinese company Geely, has withdrawn its financial forecasts for this year and next, aiming to save over 1.6 billion euros. The exact number of job cuts was not disclosed. The restructuring, led by new CEO Håkan Samuelsson, follows disappointing quarterly results due to lower car sales and reduced profits. In addition to U.S. import duties, Volvo is facing challenges with declining demand for electric vehicles and global trade tensions affecting consumer confidence. Samuelsson emphasized the importance of lowering costs and increasing production in the U.S. to address the import tariffs. The company plans to adjust pricing for consumers, increase production at its South Carolina plant, and expects most impacts of the cost-cutting measures to be felt next year.