Swedish carmaker Volvo Cars posts a loss and will cut 2,500 jobs
Swedish carmaker Volvo Cars recorded a net loss of 5.7 billion kronor in the third quarter. It plans to save five billion kronor by eliminating about 2,500 jobs worldwide.
Swedish automaker Volvo Cars announced on Friday that it suffered a net loss of 5.7 billion kronor (512.9 million euros) in the third quarter of this year, covering July to September. The company also said it plans to eliminate roughly 2,500 jobs worldwide as part of a cost-cutting effort.
In the same period last year, the company made a profit of 4.5 billion kronor. Revenue for the quarter fell by almost 23% to 66.9 billion kronor.
Cost-cutting plan
The carmaker aims to save five billion kronor. The plan involves cutting about 2,000 jobs in Sweden and a further 500 in other countries.
Chief executive Håkan Samuelsson said Volvo Cars continues to operate in very harsh conditions, facing strong external challenges. He named deglobalization, hypercompetition and climate change as examples.
Ownership
A controlling stake in Volvo Cars is held by the Chinese automaker Zhejiang Geely Holding Group.
