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Volvo Cars Unveils Major Cost-Cutting Plan Amid U.S. Tariff Pressures

Volvo Cars has announced a sweeping cost-reduction initiative, including job cuts, as it navigates the challenges posed by U.S. import tariffs and weakening demand for electric vehicles.

The Swedish automaker, owned by China's Geely, has retracted its financial outlook for both the current and upcoming year. The company is targeting over €1.6 billion in savings as part of a broad restructuring effort. While the exact number of affected jobs remains undisclosed, the impact is expected to be significant.

This strategic overhaul comes in response to disappointing first-quarter results. Volvo reported a sharp decline in profits and a drop in vehicle sales, largely driven by escalating trade tensions, reduced consumer confidence, and a cooling EV market.

Håkan Samuelsson, who recently returned as CEO after leading the company until 2022, emphasized the urgency of the move. He described the U.S. tariffs as causing "huge disruption" for a globally integrated brand like Volvo.

To mitigate these challenges, Volvo plans to ramp up production at its U.S. plant in South Carolina while absorbing part of the increased tariff costs and passing some on to consumers. The restructuring and cost-saving measures are expected to take full effect in the coming year.

Audi is initiating a recall of 17 different models across the United States due to an issue with the pins within the passenger seat occupant detection system's control module, potentially impeding airbag deployment.

The National Highway Traffic Safety Administration (NHTSA) issued a recall notice citing incorrectly soldered pins on the seat occupant detection system's circuit board. This flaw could disrupt communication between the system's control module and the airbag control module, with vibrations exacerbating the issue. In response, the airbag control unit may enter fail-safe mode, deactivating the passenger airbag and heightening the risk of injury for occupants.

Though affecting various Audi models, the recall affects only 91 vehicles in the US, including:

- 2023 Audi S5 Cabriolet

- 2023 Audi A4 Allroad

- 2024 Audi A8

- 2024 Audi E-Tron Quattro

- 2024 Audi E-Tron Sportback Quattro

- 2023-2024 Audi Q3

- 2023-2024 Audi Q5

- 2023 Audi Q5 Sportback

- 2023-2024 Audi Q7

- 2024 Audi Q8

- 2023 Audi A3 Sedan

- 2024 Audi RS Q8

- 2023 Audi S5 Sportback

- 2023 Audi SQ7

- 2023 Audi TT Coupe

- 2023 Audi TT Roadster

- 2023 Audi RS5 Sportback

Owners should be vigilant for an illuminated yellow airbag warning light on the dashboard, indicating the issue. Audi plans to replace the affected vehicles' passenger seat occupant detection system control module by or before May 31, 2024.

March proved to be an exceptional month for Volvo, marking unprecedented global sales figures. Setting a new record, Volvo witnessed remarkable success with a surge in demand for its vehicles.

Breaking its own sales record, Volvo achieved a remarkable milestone by selling 78,970 cars worldwide in March, marking a staggering 25 percent increase compared to the same period last year. Notably, nearly a quarter of these sales comprised fully electric Volvos, reflecting the growing trend towards sustainable mobility.

In Europe, Volvo experienced a notable 33 percent rise in sales, totaling 39,756 cars sold in March. Impressively, almost 40 percent of these sales were fully electric vehicles, amounting to 14,967 units. Meanwhile, in the United States, Volvo saw a significant 50 percent increase in sales, with 15,315 units sold, albeit fewer than in Europe. In China, Volvo sold 14,005 cars, indicating a 21 percent increase compared to March of the previous year.

While the Volvo EX30 certainly contributed to this growth, the enduringly popular XC60 remains the flagship model, with over 22,400 units sold, marking a notable increase of over 4,000 units from the same period in 2023. Accounting for more than 28 percent of Volvo's global sales, the XC60 continues to reign supreme. Following closely behind is the XC40, with 20,557 registrations, securing the second position. The recently introduced XC90 also performed admirably, with 10,826 units sold, securing third place in the SUV segment.