Volvo cuts expenses as profits keep falling

Volvo Cars has reported receiving 12% less revenue in Q1 2025 compared to the same period of 2025, so some crisis management is now due.

In monetary terms, Volvo made U.S. $8.62 billion in revenues in the first quarter of the year. More importantly, it only made $198 million in operational profit – down more than 50% from the last year’s $489 million.

The executives at the rudder of the company say that external factors are to blame. They also complain about Donald Trump’s tariffs and overall unpredictability. Moving forward, Volvo plans to open a new branch office in the United States and ramp up production at its existing site in South Carolina.

Last but not least, the Swedish automaker says it will have to find a way to cut $1.87 billion in expenses. Just how it may achieve such an ambitious target remains unknown.