Chinese-owned Volvo Cars to cut 3,000 jobs

Sweden-based car maker Volvo Cars says it will cut around 3,000 jobs as part of its cost-cutting measures.

The firm says the layoffs will mainly impact office-based positions in Sweden, representing about 15% of its white collar workforce.

Last month, Volvo Cars, which is owned by Chinese group Geely Holding, announced an 18 billion Swedish kronor ($1.9bn; £1.4bn) “action plan” shake-up of the business.

The global motor industry is facing a number of major challenges including US President Donald Trump’s 25% tariffs on imported cars, higher cost of materials and slower sales in Europe.

The chief executive of Volvo Cars, Håkan Samuelsson, pointed to the “challenging period” faced by the industry as a reason for the layoffs.

“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” he said in a statement.

Earlier this month, the firm said its global sales for April fell by 11% compared to the same period last year.

Volvo Cars has its main headquarters and development offices in Gothenburg, Sweden. It has major production plants in Sweden, Belgium, China and the US.
The company was sold by US motor industry giant Ford to China’s Geely in 2010.

In 2021, Volvo said all of its cars would go electric by 2030. Last year it scaled back that ambition due to a number of issues including “additional uncertainties created by recent tariffs on EVs in various markets”.

Japanese car maker Nissan said earlier this month that it will cut another 11,000 jobs globally and shut seven factories as it shakes up the business in the face of weak sales.

Falling sales in China and heavy discounting in the US, its two biggest markets, have taken a heavy toll on earnings, while a proposed merger with Honda and Mitsubishi collapsed in February.

The latest cutbacks brought the total number of layoffs announced by the company in the past year to about 20,000, or 15% of its workforce.

Source: BBC

-Agencies