Volvo Cars’ Q3 China revenue halved! Turning profit into huge loss, plans to lay off 2,500 employees

"Swedish national treasure" Volvo Cars pointed out on the 23rd that the Chinese market is changing faster than expected, affecting its third-quarter revenue, and plans to lay off 2,500 people. The financial report shows that Volvo China’s revenue fell by nearly 50% in the third quarter.

CNBC reported that the financial report showed that Volvo’s third-quarter operating loss was 5.6 billion Swedish kronor ($563.7 million), a sharp drop from the previous quarter’s operating profit of 6.4 billion Swedish kronor. Volvo, part of China's Geely Holding Group, blamed the decline in performance on "more severe" market conditions in the United States and China, which "had a negative impact on free cash flow."

Volvo Cars' stock price plummeted 30% on the 23rd, and finally closed down 24.2%.

Volvo Cars CEO Hakan Samuelsson said, "This is of course closely related to the Chinese market, and the pace of change is faster than we expected." He added that selling global models developed in Europe is no longer effective, which affects all Western car companies operating in China.

He also pointed out that in the United States, tariffs and fewer incentives for consumers to buy electric vehicles have put pressure on Volvo's profits. The company plans to cut costs by SEK 50 and lay off 2,500 people worldwide, 2,000 of whom are Swedish employees.