Core Viewpoint - Volvo is experiencing a significant decline in sales, with July 2023 global deliveries dropping to 49,273 units, a 14% year-on-year decrease, marking the lowest sales point of the year and continuing a five-month downward trend [1][2][3] Sales Performance - In July 2023, Volvo's global sales were 49,273 units, down 14% year-on-year, continuing a downward trend for five consecutive months [2][3] - In the first half of 2023, Volvo's cumulative sales in China were 70,300 units, a 10% year-on-year decline, accounting for about 20% of its global sales [3][5] - The company reported a revenue of 93.5 billion Swedish Krona (approximately 69.45 billion RMB) for Q2 2023, an 8% decrease year-on-year [5][7] Financial Performance - Volvo recorded an operating loss of 10 billion Swedish Krona (approximately 7.4 billion RMB) in Q2 2023, marking its first loss since going public in 2021, significantly down from a profit of 8 billion Krona (approximately 5.9 billion RMB) in the same period last year [7][9] - The market had expected a profit of 2.3 billion Swedish Krona (approximately 1.7 billion RMB) for Q2 2023, indicating a substantial miss in expectations [7] Strategic Challenges - The decline in sales is attributed to both external tariffs and internal strategic missteps, particularly in the U.S. and Chinese markets [10][12] - In the U.S., Volvo's focus on sedans like the S60 and S90 has not aligned with market demand, which favors SUVs [10][12] - In China, Volvo faces challenges due to slow electrification and inadequate brand marketing, leading to poor competitiveness against domestic new energy vehicle manufacturers [12][15] Product Development and Market Response - Volvo's electric vehicle strategy has been criticized for relying on a "fuel-to-electric" platform rather than a native electric architecture, impacting performance and market appeal [12][15] - The company has announced plans to shift production focus in the U.S. to SUVs and crossovers, with the XC60 being a key model that saw a 23% sales increase in the first half of 2023 [19] - In China, Volvo is launching a new hybrid SUV, the XC70, which is expected to be available for pre-sale soon, aiming to regain market traction [19][21]

Group 1 - The core viewpoint of the article highlights that Volvo is facing significant challenges due to increased costs from Trump's tariffs and sluggish EV sales, leading to unavoidable large-scale layoffs [1][3]. - Volvo announced plans to cut 3,000 jobs, which represents 7% of its global workforce, focusing on office positions, including 1,200 employees in Sweden and 1,000 consultants [2]. - The company aims to reduce costs by 18 billion kronor through layoffs and investment cuts, although the specific number of layoffs was not disclosed initially [2]. Group 2 - The layoffs are expected to incur additional costs of up to 1.5 billion kronor [3]. - Volvo's electric vehicle sales are relatively high compared to competitors, but the company has been significantly impacted, with operating profit for Q1 2025 dropping to 1.9 billion kronor, a 60% year-on-year decrease [3]. - Due to the uncertainty surrounding Trump's tariffs, Volvo has withdrawn its performance forecast for the fiscal year 2025 [3].