Volvo sells more cars, cuts jobs

VOLVO Cars has reported this month a 10 per cent uptick in global sales over the same month last year with 51,976 units sold.

Despite the positive news, the Sino-Swedish manufacturer has at the same time announced job cuts of 1300 staff it attributes in part to increased raw material prices and increased competition.

According to a statement issued by Volvo Cars this week, the company’s sales growth was primarily driven by demand for electric vehicles. In April, Volvo Cars’ electrified Recharge range of models – with BEV or PHEV powertrains – made up 40 per cent of all Volvo cars sold globally. Fully electric models tallied 17 per cent.

Volvo said that year-to-date it has sold 214,914 cars, up 10 per cent on the same period in 2022.

European sales grew to 20,804 cars for April, up five per cent. The share of Recharge models sold in the region reached 63 per cent of the brand’s overall sales.

In China, Volvo sold 12,543 sales, or 46 per cent more compared with April 2022, with Recharge models accounting for 10 per cent of all vehicles sold – an 86 per cent upswing over the same time last year.

Sales in the United States declined four per cent in April to 9611 cars. Recharge models reached 31 per cent of overall sales in the region.

Volvo said its XC60 SUV is its best-selling model globally with 16,658 units sold (up from 14,952 the year prior). The XC40 SUV places second with 13,740 units (down from 13,876 last year) and the XC90 in the third with 8179 units (also down from 8208).

Locally, Volvo has sold 3781 vehicles to the end of April, including 1044 units for the month. April best sellers include the XC40 with 527 unit sales, the XC60 with 256, the C40 with 133, and XC90 with 96.

However, despite the positive tone set by Volvo Car’s growing global sales, the manufacturer has announced job cuts at its Swedish headquarters.

In a statement issued this week, Volvo Cars CEO, Jim Rowan, said the company would need to increase its focus on cost optimisation and resource efficiency as it works to accelerate its ongoing transformation.

As a result, Volvo Cars will cut 1300 office-based positions from its operations in Sweden, 1100 of which will be axed from its main operating unit, Volvo Personvagnar. The remaining 200 positions will be cut following an internal review.

The numbers account for approximately six per cent of the firm’s total number of employees in Sweden.

In addition, the company said it will “reduce costs and drive efficiencies across its global operations over the coming months”.

“The cost actions we initiated last year have started to bear results in some key areas, such as material costs,” said Volvo Cars CEO, Jim Rowan.

“However, it’s clear that we need to do more. Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time.

“The industry is also transforming quickly – on electrification, software, and core computing technologies, as well as direct customer engagement. We gained early mover advantage and are advancing towards our 100 per cent electric ambition.

“We will continue to invest in the skills, technologies and tools needed to help create safe and sustainable mobility for our customers. Implementing structural change and driving increased efficiency across the entire company allows us to do this.”