{"id":943574,"date":"2026-10-28T05:18:12","date_gmt":"2026-10-28T05:18:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/943574\/"},"modified":"2026-10-28T05:18:12","modified_gmt":"2026-10-28T05:18:12","slug":"8-5bn-wiped-car-giant-slumps-slashes-jobs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/943574\/","title":{"rendered":"$8.5bn wiped: Car giant slumps, slashes jobs"},"content":{"rendered":"

Global car brand Volvo is the latest carmaker on the edge after a share price plunge and the announcement of huge job losses.<\/p>\n

The Geely-backed Swedish automaker\u2019s shares plunged 24 per cent last Friday after it revealed a shocking quarterly loss and a staggering cash burn that doubled year-on-year.<\/p>\n

\u201cThe third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement,\u201d Volvo Cars CEO, H\u00e5kan Samuelsson said.<\/p>\n

\"Volvo's<\/p>\n

MORE: \u2018Survive\u2019: Iconic car brand\u2019s shock admission<\/a><\/p>\n

The company reported an operating loss of around A$529 million (3.7 billion Swedish kronor) for the September quarter, reversing an $829 million (5.8 billion kronor) profit recorded a year earlier.<\/p>\n

It also burned through around $1.27 billion (8.9 billion kronor) in cash over the quarter, more than doubling its cash burn compared to the same time last year.<\/p>\n

ANNUS HORRIBILIS FOR VOLVO<\/p>\n

Overall, it has not been the best year for the Swedish company.<\/p>\n

The results cap off a gruelling 12 months in which Volvo Cars wiped out roughly A$8.5 billion \u2014 nearly two-thirds of its market capitalisation \u2014 with its share price plunging 64 per cent year-on-year.<\/p>\n

The company has faced compounding headwinds, including slower-than-expected global EV adoption, mounting tariffs on China-built vehicles entering the US and Europe, and an aggressive price war in China.<\/p>\n

MORE: Flood of Chinese EVs batters Aus car industry<\/a><\/p>\n

To protect its balance sheet, the automaker plans to eliminate a further 2,500 jobs worldwide.<\/p>\n

These latest redundancies come on top of roughly 3,000 positions previously cut, bringing total planned reductions to around 5,500 roles under its ongoing cost-reduction program.<\/p>\n

VOLVO\u2019S HUGE AUSSIE U-TURN<\/p>\n

The financial pressure comes as Volvo rethinks its electric vehicle ambitions in Australia.<\/p>\n

In late 2022, Volvo Car Australia announced plans to sell only fully electric cars locally from 2026, projecting that EVs would account for nearly 80 per cent of its sales by 2025.<\/p>\n

However, the brand has since backed away from that plan, admitting slower-than-expected demand and a failure to secure key models it expected to have available when the plan was first announced.<\/p>\n

Volvo still has a growing range of fully electric vehicles in Australia, including the EX30 and EX40 SUVs, the seven-seat EX90 SUV, and the ES90 sedan.<\/p>\n

The next major addition is the midsize EX60 electric SUV, expected to arrive in Australia in 2027.<\/p>\n

MORE: Dangerous car feature putting you at risk<\/a><\/p>\n

Mr Samuelsson has described the EX60 as one of the company\u2019s most important new models, with the vehicle expected to play a key role in its push to attract more buyers to electric cars.<\/p>\n","protected":false},"excerpt":{"rendered":"Global car brand Volvo is the latest carmaker on the edge after a share price plunge and 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