Volvo Cars to cut costs | 2019-07-19

Volvo Cars to cut costs

19 July, 2019 12:00 AM printer

STOCKHOLM: Volvo on Thursday announced plans to cut fixed costs by 2 billion Swedish crowns (US$214 million), becoming the latest carmaker to warn that pricing pressure and tariffs arising from the China-US trade war were denting profitability.

Carmakers are under pressure from trade conflicts, hefty investment needed to develop electric and driverless cars and an overall downturn in the car industry, report agencies.

Volvo, part of China's Geely family, aims to produce premium cars to rival BMW and Daimler's Mercedes-Benz. It has rejigged its global production plans in an effort to reduce the impact of increased tariffs.