Volvo Cars shares plunged nearly 26% on Friday after the Swedish automaker reported a third-quarter operating loss of 5.6 billion Swedish kronor, equivalent to about $564 million, and announced plans to eliminate 2,500 jobs worldwide.
The company blamed tougher market conditions in China and the United States. Revenue in China fell almost 50% year over year as domestic brands intensified competition and pressured prices.
He said the company must develop vehicles tailored to Chinese customers, improve cost competitiveness and collaborate more closely with parent company Geely on platforms and software.
In the United States, tariffs and reduced incentives for electric vehicle purchases squeezed margins. Volvo aims to save 5 billion kronor through cost reductions, including 2,000 job cuts in Sweden. Samuelsson said the restructuring would create stronger regional operations and a leaner central administration.
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"China is not contributing to profitability anymore." Volvo Cars CEO Hakan Samuelsson says the market for Western-developed cars in China is disappearing fast, as the Swedish automaker plans to cut 2,5000 more jobs https://t.co/lvtuV1064U https://t.co/t2Pn1xlaYX
— Bloomberg (@business) October 23, 2026
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