Volvo will sharply reduce costs due to bad sales

The company suffers from weak demand against the background of the growth of trade tension. In this regard, the Swedes are going to cut expenses for 18 billion kroons (1.87 billion dollars), writes Bloomberg. This will inevitably lead to a reduction in jobs. In addition, Volvo revised financial forecasts for the next year: the prospects overshadow, in particular, Trump’s duties that complicate trade with the United States.

Now Volvo is busy with the restructuring of the business, which was launched by the new general director-74-year-old Hakan Samuelsson. His plan is designed to stabilize the company after a long period of bad sales against the background of a decline in demand for electric cars.

Samuelsson is going to make the Volvo business in the United States and expand production at the factory in South Carolin to get around the duties. The American line can be added “ordinary (probably with a traditional ICE) or a hybrid car.” In the meantime, a significant share of cars comes to the United States from Europe.

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The second most important market will be China: in Asia, Volvo will soon present its first connected hybrid with the extensor of the stroke. It can be based on a crossover 08 of the Lynk & Co brand, also included in the Geely holding. It is built on the Swedish platform CMA, is equipped with a 593-horsepower installation and traction batteries of CATL with a capacity of 40 kilowatt hours. The combined setting reserve is 1200 kilometers according to the Chinese CLTC cycle.

On Tuesday, Volvo shares fell 11 percent. The total decline from the beginning of the year was about 31 percent.

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