Volvo plans to cut 2,500 jobs due to China's bruising pricing war
Source: Business Insider ·
Volvo is the latest legacy automaker to say it's struggling to sell cars in China. Now, 2,500 jobs are on the chopping block.
From the source
Legacy automakers are struggling to compete in China.Bloomberg/Getty ImagesLegacy carmakers continue to report slumping sales in China.Volvo is the latest. It's planning 2,500 global job cuts to save about $530 million.America is a problem, too. Tariffs, crushed EV incentives, and Polestar's exit also hurt.China's merciless car market is taking a bite out of Volvo.On Friday, the Swedish luxury automaker said revenue in China fell by almost 50% over the past year. The company said, like many legacy premium automakers, it's facing increasing "hypercompetition" from Chinese competitors.Volvo plans to cut 2,500 jobs globally in response, it said, including roughly 2,000 in Sweden. That's part of an effort to slash costs by about $530 million."We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change," CEO Håkan Samuelsson said in a statement.It's the latest stark example of the increasing pressure on legacy…
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