Volvo Cars, a Sweden-based company majority-owned by China’s Geely, reported a decline in sales for the month of May. According to the company, they sold 59,822 cars, representing a 12% decrease compared to the same period last year. This downturn in sales was particularly evident in the electric car segment, with sales of fully electric cars dropping by 27% and accounting for 21% of total sales volume. Sales of electrified cars as a whole, including plug-in hybrids, also saw a decrease of 20%, making up 44% of total sales.
The company did not provide specific details on regional sales, but it is clear that Volvo Cars is facing challenges in the current market. In response to pressures from U.S. President Donald Trump’s new tariffs, Volvo Cars announced plans to cut 3,000 jobs, primarily in white-collar positions. This decision comes as the company grapples with high costs, a slowdown in electric vehicle demand, and trade uncertainty.
Despite these challenges, Volvo Cars remains optimistic about its future. In April, the company withdrew its earnings forecast for the next two years due to the impact of tariffs, but its shares have since seen a slight increase. As of 0710 GMT, Volvo Cars’ shares were up by 0.5%.
Overall, Volvo Cars continues to navigate a complex and ever-changing market landscape. With a focus on innovation and sustainability, the company remains committed to providing high-quality vehicles to its customers.
This article was reported by Louise Rasmussen and edited by Stine Jacobsen.
