Volvo Cars' May 2025 sales dropped 12% due to US tariffs, with electrified models falling to 44% share. Cost-cutting includes 3,000 job cuts amid global auto industry challenges. (219 characters)
Volvo Cars reported a 12% decline in global sales for May 2025 compared to the same period the previous year, with a total of 59,822 vehicles sold. Industry analysts attribute this downturn in part to ongoing challenges posed by U.S. automotive tariffs, which have impacted several European automakers.
Electrified vehicles, including both fully electric and plug-in hybrid models, represented 44% of the company's May sales—a notable decrease from 66% in May 2024. Fully electric vehicles accounted for 21% of sales, while plug-in hybrids made up 23%.
The XC60 remained Volvo's top-selling model, with 19,408 units sold, though this figure was slightly lower than the 20,507 units sold in May 2024. The XC40/EX40 followed closely, with 14,892 units sold—an increase from the previous year's 13,640 units. The XC90 secured third place, with 8,794 units sold, down from 9,072 in the prior year.
Headquartered in Gothenburg, Sweden, Volvo Cars operates production facilities in the U.S., Belgium, and China. As of December 2024, the company employed approximately 42,600 full-time workers.
In response to market pressures, Volvo has initiated significant cost-cutting measures, including the elimination of 3,000 positions. The majority of these layoffs will affect office-based roles in Sweden, representing roughly 15% of the company's white-collar workforce. Among these reductions, 1,000 are consultant positions. Earlier in May, the company also cut 125 jobs at its Ridgeland, South Carolina facility.
"These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth,"
the company stated in a press release.
"Volvo Cars remains committed to its ambition of becoming a fully electric car manufacturer, as this segment continues to demonstrate the strongest growth."
While Volvo initially aimed to transition entirely to electric vehicles by 2030, it has since adjusted this timeline due to market uncertainties, including shifting EV tariffs. Broader industry challenges, such as rising material costs and slowing European demand, have also prompted workforce reductions at other major automakers, including Nissan, Ford, General Motors, Volkswagen, Tesla, and Stellantis.
