Volvo Automobiles, which is majority-owned by China‘s Geely Holding , on April 29 unveiled a programme to slash prices by 18 billion Swedish crowns ($1.9 billion) and hit the brakes on investments, warning that redundancies had been inevitable.
Within the first quarter, the auto maker had 43,500 full-time workers and three,000 staffing company personnel, in response to its earnings report.
Volvo Automobiles mentioned in an announcement the reductions will primarily have an effect on office-based positions in Sweden and characterize round 15% of the overall office-based workforce globally.
“The automotive trade is in the course of a difficult interval. To deal with this, we should enhance our money stream technology and structurally decrease our prices,” CEO Hakan Samuelsson mentioned.
Because the group introduced its value cuts final month it additionally withdrew its monetary steering, pointing to unpredictable markets amid weaker client confidence and commerce tariffs inflicting turmoil within the international auto trade. On Friday U.S. President Donald Trump threatened to impose a 50% tariff on imports from the European Union from June 1, however on Monday he backed away from that date, restoring a July 9 deadline to permit for talks between Washington and Brussels. Samuelsson on Friday informed Reuters clients would pay an enormous a part of any tariff-related value will increase, and {that a} 50% levy may make it unimaginable to import one in every of its most inexpensive vehicles, the Belgium-made EX30 electrical automobile, to the U.S. ($1 = 9.4829 Swedish crowns)
