What's Going On At Volvo? Not Selling Enough XC90s, XC60s Or XC40s? Job Cuts On The Way...

Swedish carmaker Volvo, which is owned by China’s Geely, is cutting several hundred jobs, Swedish radio reported on Friday citing sources.

The carmaker, whose number of employees has more than doubled over the past decade to about 43,000, confirmed it was reviewing staff and other costs to ensure its business had the “right skills”.

“As a growing company Volvo Cars is constantly reviewing its cost base. This becomes even more important in light of the headwinds the industry is facing and Volvo Cars is now increasing its focus on costs related to staffing and bought services,” the company said in an emailed statement...

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dlin - 5/14/2019 1:17:42 AM

+2 Boost

Not surprised

Volvo has always been also-ran

skytop - 5/14/2019 1:53:27 AM

+2 Boost

The Chinese have probably fired all the quality control engineers at Volvo.

Truthy - 5/14/2019 10:17:54 AM

+2 Boost

Both of them?

dlin - 5/15/2019 2:36:26 AM

-3 Boost

Chinese in fact strengthened the brand, both in design and quality. Just sit in one and you'll see the difference

Thing is, you can only do so much to a 3rd tier brand

TomM - 5/14/2019 5:40:20 AM

+2 Boost

For Decades - Volvo was a second tier Premium car - in the range with Buick, Infiniti - Saab and others. However - Geeley decided to try to take the Volvo Upmarket - but it failed. Volvo simply does not have the prestige of a true First Tier Premium - so they are overpriced for their real position.

WHile they may LOOK decent - they are perceived now as a Chinese made car - not a Swedish one. (WHich of course is true) - and they only have 4 cylinder engines in places where a V-6 would be more appropriate. The reliance on Blown 4 cylinders is affecting reliability as well. THere are better options at less money

jeffgall - 5/14/2019 7:02:21 AM

+2 Boost

So true. Lack of a V6 in the XC90 kept me away, and went to the competition.

Dexter1 - 5/14/2019 6:54:42 AM

-1 Boost

Volvo advertising blows. Rather than tell me why I should be buying a Volvo, they have some opera lady chirping like a bird. What the f*ck!

MDarringer - 5/14/2019 8:44:36 AM

+2 Boost

Volvo thinks they are a Mercedes-level brand when they are really a Buick-level brand. The base price of the XC90 is $10K too high and it escalates in price FAR too much. It should run toe-to-toe with the Explorer, which ironically is the better choice.

The S90 is a big, dull, overpriced mess. It's a $43K car that bases $20K higher.

Where is the modern T5R?

Volvo is also experiencing dealer shrinkage.

Volvo needs to race down market ASAP.

Truthy - 5/14/2019 8:57:28 AM

+4 Boost

I thought the XC40 was a nice small crossover until I saw the price, 30 percent too high.
And how and why did they double the size of the workforce?! This is a problem China will continue to experience. We need to pay a certain number of people, assign theit salaries to that business unit.

OneOfOne - 5/14/2019 9:51:29 AM

-6 Boost

doubled in SWEDEN. it was a pr move that failed. engage brain when posting please.

Truthy - 5/14/2019 10:20:51 AM

+1 Boost

I will if you will, or can. It still makes no sense without a tremendous growth spurt in sales to support. Most companies are trying to become more efficient - do more with less.

MDarringer - 5/15/2019 8:13:01 AM

+2 Boost

@)neOfOne Truthy is correct in saying that Volvos are priced too high. In the USA, Volvo has dealers closing because people just aren't willing to buy Buicks at Mercedes prices.

carsnyc - 5/15/2019 8:20:05 PM

+1 Boost

Pricey (all of them) specially given the small engines. Flooring an XC90 / S90 from a stop will only make your ears bleed.