Volvo faces severe challenges in the Chinese market

Volvo's sales in the Chinese market have been declining for five consecutive years, and in the first quarter of 2025, sales fell again by 12%. Faced with this dilemma, Volvo plans to lay off a large number of employees, which may be as high as 50%, mainly in engineering research and development and supply chain positions. However, Volvo China officials responded that they "have not heard of it yet." In addition, Volvo's global financial situation is not optimistic. Its operating profit in the first quarter was halved to only 1.9 billion Swedish kronor.