Volvo Cars axes 1,300 jobs as it steps up cost cuts
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Volvo said economic headwinds, increased raw material prices and increased competition remained a challenge for the industry.
PHOTO: REUTERS
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COPENHAGEN - Volvo Cars will lay off around 1,300 office-based employees in Sweden as it steps up its cost cutting, the Swedish carmaker said on Thursday.
While the group’s efficiency drive had begun to show results, more was needed, chief executive Jim Rowan said in a statement on Thursday.
“Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time,” he said.
About 1,100 jobs will be cut at Volvo Cars’ main global operating unit Volvo Personvagnar, while the remaining 200 positions will be identified after a review of the company’s entities across Sweden, the group said.
A day earlier, Volvo Cars, which is majority-owned by China’s Geely Holding, said that sales increased by 10 per cent year on year in April to 51,976 cars, boosted by strong gains in China.
Sales in China surged 46 per cent, while in Europe, its biggest market, sales rose 5 per cent. In the United States, however, they were down 4 per cent.
Volvo Cars said sales of fully electric cars nearly doubled to account for 1 per cent of total sales.
All Recharge models, including those not fully electric, were up 28 per cent.
