The Swedish car manufacturer Volvo Cars, owned by the Chinese group Geely, will eliminate 3,000 jobs, or about 15% of its workforce in the offices, to deal with the degradation of the conjunction in the car, announced on Monday, May 26. A decision that is part of the 18 billion salvation plan (1.6 billion euros) announced at the end of April.
This plan “aims to strengthen and make cars volvo more resistant at a time when the automotive industry faces considerable challenges in its external environment,” the group said in a statement.
Some 1,200 positions in Sweden will be eliminated, as well as 1,000 positions occupied by consultants who are mainly in the Nordic country, the group said.
“The automotive industry is going through a difficult period. To deal with it, we have to improve our generation of cash flows and structurally reduce our costs,” said the general director of the Swedish group, Håkan Samuelsson, in the press release.
He warned in April that Volvo cars should adapt to “a more regionalized world”, referring to the current commercial war, especially between the United States and China.
Increased customs tasks in the United States
In the American territory, the Swedish group faces the increase in customs duties in cars made outside the United States, which are subject to a 25% surcharge since the beginning of April (15% for Mexico).
Since the beginning of April, the general director of the group announced that the number of cars made in the United States would increase and that it would certainly transfer the production of a new model in its American factory in South Carolina.
The manufacturer also inaugurated at the end of April in its Ghent factory, in Belgium, a new production line dedicated to its small ex30 Electric SUV. A model produced so far in China, which exposed it to Europe from Europe or the loss of ecological bonds in Fasc.
Volvo estimates that this restructuring will cause 1.5 billion Swedish crowns in the second quarter of 2025.
The effects of the restructuring plan will be felt from the fourth quarter of 2025 to 2026, according to Volvo Cars. In December 2024, Volvo Cars used about 42,600 people full.
Source: BFM TV
