Volvo Cars to cut costs by $1.9bn as earnings drop

STOCKHOLM: Sweden-based Volvo Cars launched cost cuts of 18 billion Swedish crowns ($1.87 billion) on Tuesday as its operating profit fell heavily amid difficult market conditions for the automotive industry.

Operating profit at the company, which is majority-owned by China’s Geely, was 1.9 billion Swedish crowns ($197.55 million) for the January-March period against a year-earlier 4.7 billion crowns.

Truck maker Volvo profit falls more than expected, cuts North America market outlook

The cost cuts will include layoffs and a larger decrease in investments than earlier expected, the company said, adding that it had withdrawn its financial guidance for the next two years.