Volvo Cars reported a SEK 5.6 billion third-quarter operating loss as revenue fell 23%, and plans to cut about 2,500 positions while seeking a further SEK 5 billion in savings.
Reported EBIT for July through September compared with operating income of SEK 6.4 billion in the same period of 2025. Revenue was SEK 66.9 billion, down from SEK 86.4 billion a year earlier, and retail sales fell 11% to 141,300 cars from 158,500. The reported EBIT margin was negative 8.4%, compared with positive 7.4% a year earlier.
On a separate EBIT measure excluding income from joint ventures and associates and items affecting comparability, Volvo Cars recorded a SEK 3.7 billion loss, against income of SEK 5.8 billion. Gross margin excluding comparability items was 14.7%, down from 20.4%, according to the company’s Oct. 23 interim report.
Volvo Cars said revenue in China fell by almost half year over year amid competition from Chinese alternatives and pricing pressure. It also cited U.S. tariffs and the removal of consumer incentives for electrified cars as pressures on margins. The company additionally pointed to a negative SEK 1.1 billion revaluation of U.S. CAFE credits, negative raw-material developments and a SEK 0.9 billion impact from recognizing Polestar’s Q2 2026 losses.
The planned reductions include 2,000 positions in Sweden. Volvo Cars said it would use consultant-contract terminations, natural attrition and targeted exit packages. It has not specified when the job reductions will be completed.
The company aims to cut a further SEK 5 billion in indirect spending and variable costs. It expects the measures’ full financial effects by the end of 2027, when indirect spending is projected to be almost 25% below fiscal 2024. President and CEO Håkan Samuelsson called the quarter “very disappointing” and said the turnaround plan needed “a decisive reinforcement.”
Volvo Cars withdrew its 2026 volume and cash-flow outlook on Oct. 2 in an earlier outlook update. The company’s next scheduled report, for the fourth quarter of 2026, is Feb. 4, 2027, at 06:00 UTC (07:00 CET).
