Volvo Cars shares fall sharply after reporting China sales collapse

Volvo Cars reported a heavy loss in the third quarter on October 23, and its stock fell around 25 to 30 percent in Stockholm. Revenue dropped nearly 23 percent to 66.9 billion kronor, and the company lost 5.7 billion kronor after making a profit of 4.5 billion kronor a year earlier. Sales in China fell by almost half. Volvo blamed US tariffs and strong competition from Chinese car brands. The company will cut 2,500 jobs, about 6 percent of its total workforce, with around 2,000 of those positions in Sweden. This follows 3,000 job cuts announced the previous year. Volvo also plans an extra 5 billion kronor in cost reductions and will focus on profit margins in China rather than cutting prices to compete.