CEO Håkan Samuelsson highlighted these challenges, citing factors such as tariffs imposed by former President Donald Trump on imported vehicles, rising material costs, and dwindling sales in Europe. "The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars," he stated.

Volvo's announcement follows a 11% decline in global sales for April compared to the same month last year, reflecting broader trouble in the automobile sector. The company has major production facilities in Sweden, Belgium, China, and the U.S., and it has undergone significant changes since being sold by Ford to Geely in 2010.

In a synchronized pattern of cutbacks, Japanese automaker Nissan also disclosed plans to eliminate 11,000 jobs globally and shutter seven factories, adding to the industry's troubling landscape defined by decreased sales in key markets such as China and the U.S.

Attentively observing the tightening competition among car manufacturers, Chinese electric vehicle manufacturer BYD has recently lowered prices on its models, an aggressive move that has spurred similar actions from competitors like Changan and Leapmotor. BYD's strategy successfully positioned it to outsell Tesla in Europe for the first time in April, underscoring the fierce dynamics at play in the global automotive market.

With increasing price competition and declining sales, it remains to be seen how Volvo Cars and others will navigate this tumultuous landscape moving forward.