Volvo Unveils SEK 18B Cuts After Q1 Profit Plunge

Volvo Cars reported a 12% drop in revenue and a 72% decline in operating income for the first quarter of 2025, with global vehicle sales falling 6% amid weak demand, currency headwinds, and trade tensions. The company announced an SEK 18 billion ($1.87 billion) cost-cutting initiative, involving layoffs, reduced investments, and operational restructuring, with a particular focus on its Americas business. Most of the cost-saving effects are expected in 2026. Volvo withdrew its financial guidance for the next two years in response to ongoing market uncertainty. Electrification remains a priority, with fully electric vehicles comprising 19% of Q1 sales and electrified models making up 43%. The company aims to enhance operational efficiency and cash flow to weather industry challenges.