Chinese-owned car maker Volvo Cars is cutting around 3,000 jobs as part of its cost-cutting measures. The layoffs mainly impact office-based positions in Sweden, representing about 15% of its white collar workforce.
The move comes amid a challenging period for the global motor industry, including US President Donald Trump’s 25% tariffs on imported cars and higher material costs. Volvo Cars’ CEO Håkan Samuelsson attributed the layoffs to these industry challenges.
The company has already scaled back its ambitions to go electric by 2030 due to uncertainties created by recent tariffs on electric vehicles in various markets. Meanwhile, rival car maker Nissan is also cutting jobs and shutting factories as it adjusts to weak sales.
Volvo’s parent company Geely Holding, which acquired the firm from Ford in 2010, has been facing pressure from Chinese government-owned rivals that have lowered their prices. BYD, a Chinese electric vehicle giant, recently cut the price of its cheapest car by over 40% and outsold Tesla in Europe for the first time.
The move is part of Volvo’s cost-cutting plans, which were announced last month as part of an “action plan” aimed at strengthening the business. The company has already laid off around 20,000 employees this year, accounting for about 15% of its workforce.
Source: https://www.bbc.com/news/articles/c8jgrl1wde8o