--- title: "Volvo CEO says China sales fell 50% faster than expected, and 2,500 jobs are going" description: "Volvo Cars swung to a 5.6 billion kronor operating loss in the third quarter, and its CEO says Europe-developed models will not work in China." url: https://cars.skoop.news/it-will-not-work-volvo-cars-ceo-on-selling-european-models-i--10-23/ published: 2026-10-23T07:27:28.226261-04:00 modified: 2026-10-23T07:27:28.226261-04:00 section: "Cars & EVs" publisher: "skoop.news" language: en keywords: ["volvo", "Volvo Cars", "Squawk Box Europe", "Geely Holding", "China", "Chinese", "Samuelsson", "Swedish", "cars", "automaker"] hashtags: ["#VolvoCars", "#SquawkBoxEurope", "#GeelyHolding", "#Cars", "#ev"] image: https://thumb.wikimedia.org/wikipedia/commons/thumb/b/b2/SEA_Chinese_origin_map.jpg/1280px-SEA_Chinese_origin_map.jpg?utm_source=commons.wikimedia.org&utm_campaign=imageinfo&utm_content=thumbnail --- # Volvo CEO says China sales fell 50% faster than expected, and 2,500 jobs are going > Volvo Cars swung to a 5.6 billion kronor operating loss in the third quarter, and its CEO says Europe-developed models will not work in China. Published 2026-10-23 · Cars & EVs, [skoop.news](https://skoop.news/) ## In brief - Volvo Cars' revenues in China fell almost 50% year-on-year, and the drop is hitting profitability [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html) [[2]](https://www.cnbc.com/video/2026/10/23/it-will-not-work-volvo-cars-ceo-on-selling-european-models-in-china.html). - Volvo Cars reported an operating loss of 5.6 billion Swedish kronor ($563.7 million) in the third quarter [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). - Premium brands in China faced 'hypercompetition' from new Chinese rivals, which also put severe pressure on pricing [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## A halved China business and a quarterly loss Volvo Cars' revenues in China fell almost 50% year-on-year, and the drop is hitting profitability [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html) [[2]](https://www.cnbc.com/video/2026/10/23/it-will-not-work-volvo-cars-ceo-on-selling-european-models-in-china.html). The automaker said on Friday it plans to cut 2,500 jobs after the decline in its Chinese market weighed on third-quarter earnings [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). CEO Håkan Samuelsson said the change in the Chinese market has come faster than the company thought [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Volvo Cars shares were last down around 27% [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## The third-quarter numbers Volvo Cars reported an operating loss of 5.6 billion Swedish kronor ($563.7 million) in the third quarter [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). That compares with an operating profit of 6.4 billion Swedish kronor in the previous period [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). The company said a deteriorating environment, led by 'tougher' market conditions in China and the U.S., 'negatively affected free cash flow' [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). In the U.S., it cited negative effects from tariffs and fewer customer incentives to buy electric cars, which put pressure on profit margins [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## Why China turned against Western brands Premium brands in China faced 'hypercompetition' from new Chinese rivals, which also put severe pressure on pricing [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Samuelsson said Chinese consumers are now looking for 'domestic alternatives,' which have become stronger and more competitive [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). He said that selling global cars developed in Europe and China will not work, and that this affects all Western players in China [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Volvo Cars is presenting the 'will not work' line for Europe-developed models as a video headline attributed to Squawk Box Europe [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## The new China plan Samuelsson said Volvo Cars needs a new strategy in China with a more regional structure, a more empowered region, and regionally adapted cars [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). He said costs must be competitive [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Volvo Cars also needs to share some platforms with its Chinese parent company Geely and develop key software in China, including infotainment and driver-assistance systems [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Volvo Cars is owned by China's Geely Holding [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Without competitive costs, shared platforms with Geely, and China-developed key software, the CEO said Volvo Cars cannot sell cars in China [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## The cuts Volvo Cars is looking to cut 5 billion Swedish kronor in costs [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). It will eliminate 2,500 jobs globally, with 2,000 of those based in Sweden [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Samuelsson said the restructuring is a consequence of the company's long-range strategy, creating more empowered, stronger regions and requiring a leaner central administration [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## What it means for you If you work at Volvo Cars in Sweden, 2,000 of the 2,500 job cuts are based there [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). If you own the shares, they were last down around 27% [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). If you follow Volvo Cars in China, expect a more regional structure and regionally adapted cars [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). Shared platforms with Geely and China-developed infotainment and driver-assistance software are part of the plan [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). In the U.S., watch tariffs and the level of incentives for electric cars, which the company says pressured margins [[1]](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html). ## Sources 1. [Volvo Cars plunges 27% as CEO says China sales slump came 'faster than we thought'](https://www.cnbc.com/2026/10/23/volvo-cars-q3-earnings-job-cuts.html) — cnbc.com 2. [It 'will not work': Volvo Cars CEO on selling European models in China](https://www.cnbc.com/video/2026/10/23/it-will-not-work-volvo-cars-ceo-on-selling-european-models-in-china.html) — CNBC Image: Photo: Ubs6u!d-onstory / Wikimedia Commons, CC BY-SA 4.0 (https://commons.wikimedia.org/wiki/File:SEA_Chinese_origin_map.jpg) --- Written from the sources above and checked twice (rules and an independent model) before publishing. How we work: https://skoop.news/how-we-work/ · Corrections: https://skoop.news/corrections/