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Due to the recession of electric vehicles and self-driving industry, car manufacturers need a certain amount of time to recoup costs after investing huge amounts of money in R & D projects, so they are facing greater pressure. Last month, Volvo reported lower profits than the same period last year and said it would also put a lot of pressure on its annual profit margins this year.

So Volvo made a decision to "lay off" hundreds of employees. Volvo responded that it was assessing staff and other costs to ensure that the business had "the right skills", but declined to give further details.

"as a growth company, Volvo continues to evaluate its cost base," Volvo said in a statement. This becomes important given some of the difficulties facing the industry. At present, the company is paying more attention to employees and the costs associated with the purchase of services. " A spokesman for Volvo said that consultants were mainly affected and that factory production staff would not be affected. However, he declined to disclose the exact number of layoffs or how much cost savings the layoffs will be.

In 2018, Volvo Automotive Group's global business reached a record high of 642253 vehicles, up 12.4% from 571577 vehicles in the same period last year. This is the first time that Volvo's global sales have exceeded the record of 600000 vehicles since its establishment in 1927, and it is also the fifth consecutive year that Volvo has set a global sales record.

Volvo sold 29886 vehicles in China in the first quarter of this year, up 3.9 per cent from a year earlier, but profits fell nearly 20 per cent from the same period in 2018 and profit margins fell to 4.6 per cent from 6.4 per cent in the same period, according to Q1 in 2019.

Hanken Samuelson, president and CEO of Volvo Automotive Group, said: "the increase in sales in the first quarter of this year shows the strong production power of Volvo cars, and we have seen significant growth in all three core markets, compared with last year." the profit situation was mainly affected by tariff pressures and price fluctuations in many markets. "

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