Volvo Posts 760 Billion Won Q3 Net Loss, to Cut 2,500 More Jobs

Weakness in China Market and Impact of U.S. Tariffs

Volvo, the Swedish automaker whose performance has deteriorated amid weak sales in China and the impact of U.S. tariffs, is moving ahead with additional restructuring.

The company logo at a Volvo dealership in Reading, west of London. Yonhap News Agency

According to AFP and other news outlets on the 23rd (local time), Volvo, whose largest shareholder is China's Geely Group, reported a net loss of 5.7 billion Swedish kronor (about 760 billion won) in the third quarter of this year.

Revenue for the same period fell 23% year over year to 66.9 billion kronor (about 8.93 trillion won).

The net loss was significantly larger than market expectations, in contrast with the net profit of 4.5 billion kronor (about 600 billion won) recorded in the third quarter of last year.

In a statement, Volvo CEO Hakan Samuelsson said, "We are operating in a very difficult environment amid powerful external challenges, including deglobalization, intense competition, and climate change."

To address its weak performance, Volvo also announced a cost-cutting plan worth 5 billion kronor (about 670 billion won). The plan includes an additional 2,500 job cuts, equivalent to about 6% of its total workforce. Of those affected, 2,000 are in Sweden and 500 are in other regions. Volvo recently carried out a restructuring that reduced its workforce by 3,000.

The decline in sales in China is cited as a major cause of the deterioration in performance. As local Chinese companies dominate the electric vehicle market, Volvo's vehicle deliveries in China fell by more than 40% in the third quarter. German automakers such as Volkswagen and BMW have also moved to make large-scale job cuts amid intensifying competition with Chinese companies.

In an interview with Bloomberg TV, Samuelsson expressed concern, saying, "The possibility of selling cars developed in the West in China has virtually disappeared."

Policy changes in the U.S. market have also weighed on profitability. Volvo had continued to make major investments in electric vehicles, but was dealt a blow when electric vehicle subsidies in the United States were eliminated after U.S. President Donald Trump took office.

This content was produced with the assistance of AI translation services.