Volvo reports revenue drop and net loss

Volvo has announced a significant decline in revenue and a net loss for its third-quarter financial results, despite strong performance in its electric vehicle sales. Revenue fell by nearly a quarter compared to the same period last year, reaching 66.9 billion Swedish crowns, while the company recorded a net loss of about 513 million euros, compared to a profit of 405 million euros a year earlier.

Electric vehicles show growth but not enough to offset losses

Despite the overall financial decline, Volvo’s fully electric cars now account for nearly one-third of its global sales, with a 45% share in Europe. The new EX60 model has already received more than 50,000 orders in Europe, but production has started more slowly than expected, which has slowed down deliveries.

Chinese market struggles and job cuts planned

In China, Volvo’s revenue has nearly halved compared to last year, as it faces stiff competition in the market. In response to these challenges, Volvo has announced plans to eliminate about 2,500 jobs globally, with 2,000 of those positions in Sweden. The company will end consultant contracts and offer targeted departures as part of a new cost-cutting plan of about 450 million euros, with full effects expected by the end of 2027.

Production plans may include other Geely brands

Volvo is considering assembling cars from its parent company, Geely, in Chengdu, China, and in Gand, Belgium. Gand is a major production site in Belgium, employing over 6,000 people, and produced 212,177 cars in 2025. The plant is responsible for models such as the EX30, V60, EX40, and EC40. Hosting models from other brands could help keep the production lines active.

Belgium seeks to retain Volvo’s investment

For Belgium, the potential shift in production plans carries significant weight. Earlier this year, Flanders offered up to 119 million euros in aid to ensure Volvo stays in Gand. In return, the company committed to investing in the site, with the aid dependent on these investments being realized. The idea of producing Geely cars in Gand had already been discussed in July when the plant was looking for new models or increased production volume.

Uncertainty remains for Belgium’s workers

Volvo has also announced other production relocations, such as the XC60 model moving to Charleston, United States, starting in the first quarter of 2027. However, no final decisions have been made regarding the brands or schedule involved. The company has not specified how many of the 500 job cuts outside Sweden will affect Belgium. The Gand plant remains in limbo, with workers awaiting more clarity on the company’s future plans.