STOCKHOLM: Volvo Cars swung to an operating loss in the third quarter as a slow production ramp-up of its new EX60 electric SUV and weak demand in China and the United States hit sales, and said on Friday it will cut some 2,500 jobs.
The company, majority-owned by China’s Geely Holding , swung to an adjusted operating loss of 3.7 billion Swedish crowns ($373 million) for the third quarter, from a profit of 5.8 billion crowns a year earlier.
“The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement,” CEO Hakan Samuelsson said in a statement accompanying the earnings report.
Volvo said that in addition to its earlier cost reductions it will cut an additional 5 billion crowns in indirect spend and variable costs, which it expects to be realised by the end of next year.
Volvo Cars earlier this month scrapped its guidance for full-year sales volume and cash flow owing to what it said was an increasingly challenging market and deteriorating near-term outlook.
The group’s share price hit a record low this week and is down 54% year-to-date, burdened by tariffs, weaker EV demand and high development costs.