The Globe and Mail reports in its Saturday edition that Volvo shares plunged 24 per cent on Friday after it posted a far bigger-than-expected third quarter operating loss, doubled its cash burn and announced 2,500 more job cuts.
A Reuters dispatch to The Globe reports that the slump, bringing shares to a record low, comes as the Geely-owned firm faces uneven electric vehicle demand, mounting tariffs and tough market conditions in China.
Chief executive officer Hakan Samuelsson said: "The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement."
He said the cuts should be completed by mid-2027, although he did not rule out further measures.
The automaker reported an operating loss of 3.7-billion Swedish kronor ($521-million) in the quarter, compared with a profit of 5.8-billion kronor a year earlier. Citi analysts said the consensus forecast was for a loss of 724-million kronor.
Volvo's struggles reflect a broader squeeze on European automakers from weak demand, intense competition from Chinese rivals and excess factory capacity that has eroded margins across the industry.
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