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Volvo has adjusted its global production plans to reduce the impact of tariff increases under pressure from trade conflicts, the development of electric cars and self-driving technology, and the overall downturn in the car market. According to foreign media, Volvo announced that it would cut its fixed costs by 2 billion Swedish kronor.

In addition, manpower and other costs were assessed earlier this year, and Volvo said the new cost measures would begin in the second half of the year and last until the first half of 2020. These measures will include further layoffs, but mainly cost cuts to save another 1 billion Swedish kronor. Volvo currently employs more than 40000 people and has cut 500 advisory positions and hundreds of service jobs.

So far in the first half of this year, Volvo's revenue reached a record 130.1 billion Swedish kronor, but its operating profit fell to 5.5 billion Swedish kronor from 7.8 billion Swedish kronor in the same period last year.

In the first half of this year, Volvo's global sales reached 340286, up 7.3 percent from 317639 in the same period last year; revenue was 130.1 billion Swedish kronor, up from 122.9 billion Swedish kronor in the same period last year; and operating profit was 5.5 billion Swedish kronor, down from 7.8 billion Swedish kronor in the same period last year.

In fact, today's major automakers are facing the pressure of trade conflicts, the huge amount of money needed to develop electric and self-driving cars, and the challenges posed by the overall downturn in the auto industry. Volvo is not the only one facing a profit warning red light.

Earlier, Daimler cut its profit forecast for the fourth time in 13 months, forecasting a second-quarter EBIT loss of 1.6 billion euros. At the same time, BMW issued a profit warning in March, saying that its 2019 profit would be much lower than its 2018 level, so it will carry out a cost-saving plan of 12 billion euros. Volkswagen also said that its passenger car division's sales profit margin will only meet its expected minimum target.

It can be seen that in today's severe environment of the car market, profit early warning has become a more common phenomenon, even car companies with moderate sales are not immune, and from the attitude of Volvo, it is more confident about the results of this wave of cost-cutting measures, so can Volvo achieve a rise in profits in the second half of this year? rub one's eyes and wait.

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