Volvo to cut 800 US jobs after Q1 income drops by $500 million on falling truck demand

Volvo AB’s income declined in the first quarter as uncertainty around US tariffs hit demand for trucks in North America.Operating income fell to 13.3 billion kronor ($1.4 billion), down from 18.2 billion kronor last year. The company also lowered its forecast for North America’s heavy-duty truck market to 275,000 from about 300,000 for the year, it said Wednesday.

European truck makers are under pressure to cut costs as softer demand in key markets and less favourable pricing weigh on profitability. The lack of clarity around US trade policies is expected to put a strain on freight markets and equipment purchases in upcoming quarters.
Volvo said over the weekend that it’s preparing to lay off as many as 800 workers at three US sites in the coming months amid the tariff uncertainty. The truckmaker, which produces all its North American trucks in the US, recently flagged that it will seek compensation from buyers as the new tariffs are set to impact the company’s cost of production.Volkswagen’s commercial truck unit Traton SE — owner of the Scania and MAN brands — is also facing tougher times. The company issued a profit warning for the quarter earlier in the month, citing lower deliveries and sales.