Volvo Cars swings to loss, cuts another 2,500 jobs
Volvo Cars posted an operating loss of 5.6 billion kronor in the third quarter. Revenue in China nearly halved, and the shares fell to a record low.
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Volvo Cars fell deep into the red in the third quarter of 2026. Revenue dropped from 86.4 billion to 66.9 billion Swedish kronor, the company said, and operating income was minus 5.6 billion kronor after plus 6.4 billion a year earlier. The operating margin was minus 8.4 percent and free cash flow minus 8.9 billion kronor. Weaker markets in China and the United States weighed most; revenue in China fell by almost 50 percent.
The carmaker plans to cut about 2,500 jobs worldwide, 2,000 of them in Sweden, and save an additional 5 billion kronor. "In the short term, with severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions," CEO Håkan Samuelsson said. Volvo expects two more tough years in China.
The electric share rose: fully electric cars made up 32 percent of sales, up from 22 percent a year earlier. Volvo plans 13 new models by 2030, three of them to be revealed in 2027. The shares lost as much as about 32 percent on Oct. 23, falling to their lowest level since the 2021 listing, eletric-vehicles.com reported.