Volvo Cars sales plunge 12% in May as tariff challenges continue

Published on 04/06/2025 - 16:40 GMT+2

Volvo Cars announced worldwide income of 59,822 cars successful May, which was a alteration of 12% compared pinch nan aforesaid period successful 2024. This was partially owed to nan institution struggling pinch precocious imposed US automotive tariffs. 

Electrified models — some plug-in hybrids and afloat electrical vehicles — made up 44% of each car income successful May. This was a autumn from 66% successful May 2024. While afloat electrical models made up 21% of each May sales, plug-in hybrid models accounted for 23%. 

The best-selling exemplary successful May was nan XC60, which sold 19,408 units — a flimsy dip from nan 20,507 units sold successful nan aforesaid period past year. The XC40/EX40 exemplary took 2nd place, pinch 14,892 units sold — an summation connected May 2024’s 13,640 units. 

The 3rd best-selling exemplary was nan XC90 pinch 8,794 units sold successful May 2025. By contrast, 9,072 units of this exemplary were sold successful May 2024. 

As of December 2024, Volvo Cars had astir 42,600 full-time employees, pinch its caput agency based successful Gothenburg, Sweden, and accumulation plants crossed nan US, Belgium and successful China.  

Volvo Cars starts implementing cost-cutting initiatives

Volvo Cars besides precocious announced that it would beryllium slashing 3,000 jobs, arsenic portion of wide-ranging cost-cutting measures, which are expected to prevention nan institution astir SEK 18 cardinal (€1.6bn). 

These layoffs will chiefly impact office-based positions successful Sweden, which dress up astir 15% of Volvo Cars’ achromatic collar workforce. Out of these 3,000 layoffs, astir 1,000 will beryllium advisor positions. 

Earlier successful May, nan institution laid disconnected 5% of its unit successful its Ridgeland, South Carolina facility, which accounted for 125 roles. 

Volvo Cars said successful a property merchandise astir nan redundancies connected its website: “These structural changes are basal for Volvo Cars to present connected its semipermanent strategy, strengthening its foundations for profitable growth. 

“Volvo Cars remains patient connected its ambition of becoming a afloat electrical car company, arsenic afloat electrical is nan fastest increasing marketplace conception and Volvo Cars is simply a leader successful this transition.”

Back successful 2021, nan institution revealed that each its models would beryllium electrical by nan extremity of nan decade. However, it has pushed backmost this goal, citing rising uncertainties owed to electrical conveyance (EV) tariffs successful galore markets. 

Apart from tariffs, slower European income and nan higher costs of materials person besides affected respective awesome car companies successful Europe. 

Nissan, Ford, General Motors, Volkswagen, Tesla and Stellantis person each announced layoffs successful nan past fewer months, arsenic car companies scramble to go much businesslike and adaptive successful nan existent uncertain economical environment.