New Swedish carmaker Volvo cuts almost 1,300 tasks – – shares fall – 05/04/23 – News

GOTEBORG (dpa-AFX)– Swedish automobile maker Volvo Cars wishes to cut about 1,300 tasks as part of a magnified austerity strategy. According to the business, the relocation impacts around 6 percent of Volvo’s labor force in Sweden. Production employees are not presently impacted, it stated. “In addition, the business will minimize expenses and increase effectiveness in its worldwide operations in the coming months,” it stated in a declaration on Thursday. The variety of external specialists and services ought to be evaluated and lowered.

“The austerity determines we have actually carried out over the previous year are starting to reveal lead to some essential locations, such as devices expenses,” stated CEO Jim Rowan in a declaration. “However, it is likewise clear that we need to do more. Economic chaos, increasing basic material costs and heightened competitors might stay an obstacle for our market for a long time to come.” The business’s shares fell almost 4 percent in Stockholm.

The carmaker published greater sales in 2022 in spite of decreasing sales. Running outcomes likewise increased. The assessment result after the IPO of electrical automobile producer Polestar was generally accountable for this. Volvo Cars wishes to be completely electrical by2030 In Norway and Denmark, the carmaker no longer offers diesel and gasoline engines.

Volvo Cars has actually been owned by business vehicle producer Volvo AB for years separated from today is a subsidiary of the Chinese vehicle business Geely. This brought the business public in2021 This relocation has actually not achieved success with financiers up until now– the stock has actually fallen by practically 30 percent ever since. The business is presently valued on the stock exchange equivalent to around 10 billion euros./ wbj/DP/zb