Volvo Shares Sink as China Slump Outpaces Expectations, Luxury Demand Falters

WHO:

Bloomberg Markets - Håkan Samuelsson is the chief executive officer of Volvo Car.

CNBC - Volvo Cars is owned by China’s Geely Holding.

Bloomberg Markets - Hermès and Cartier are luxury brands experiencing steeper slumps in China.

Bloomberg Markets - Anna Edwards, Guy Johnson, and Tom Mackenzie host Bloomberg’s The Opening Trade.

WHAT:

Bloomberg Markets - Volvo shares plunged about 30% to a record low after its CEO said the market for Western-developed cars in China was disappearing quickly.

Bloomberg Markets - Volvo said it would cut 2,500 more jobs.

CNBC - Volvo Cars shares fell 24.2% by the end of the trading session.

CNBC - Volvo Cars reported a third-quarter operating loss of 5.6 billion Swedish kronor ($563.7 million), compared with an operating profit of 6.4 billion Swedish kronor in the previous period.

CNBC - Volvo Cars said it planned to cut 2,500 jobs after a sharp decline in its Chinese market weighed on third-quarter earnings.

Bloomberg Markets - Samuelsson discussed Volvo’s third-quarter performance, China’s market, and cost-cutting measures on Bloomberg Television.

WHERE:

Bloomberg Markets - The reported market weakness affected China.

CNBC - Volvo cited tougher market conditions in China and the United States.

CNBC - Samuelsson said Chinese consumers were looking for domestic alternatives.

WHEN:

CNBC - Volvo Cars announced the planned job cuts on Friday.

CNBC - Samuelsson discussed the company’s results and China market on “Squawk Box Europe” on Friday.

WHY:

CNBC - Volvo said tougher market conditions in China and the United States negatively affected free cash flow.

CNBC - Samuelsson said the change in China’s market had come “faster than we thought.”

CNBC - Samuelsson said selling global cars developed in Europe and China would not work and that this was affecting Western automakers in China.

Bloomberg Markets - Luxury brands including Hermès and Cartier were suffering steeper slumps in China, as a spending pullback by wealthy consumers affected even resilient brands.

HOW:

CNBC - Samuelsson said Volvo needed “a new strategy in China,” with “a more regional structure,” a “more empowered region,” and “regionally adapted cars.”

CNBC - Samuelsson said domestic Chinese alternatives had become stronger and more competitive.

(UPDATED October 23, 2026 23:17 UTC)

Volvo Cars shares fell as much as about 30% to a record low after Chief Executive Håkan Samuelsson warned that the market for Western-developed cars in China was disappearing quickly. The shares ended the session down 24.2%. Volvo, owned by China’s Geely Holding, reported a third-quarter operating loss of 5.6 billion Swedish kronor, compared with a profit of 6.4 billion kronor in the previous period. The company also plans to cut 2,500 jobs as weaker Chinese demand weighs on earnings. Samuelsson said the market had changed faster than expected, with Chinese consumers choosing stronger, more competitive domestic alternatives. He said Volvo needs a new China strategy, including a more regional structure and cars adapted to local needs. Tougher conditions in China and the United States also hurt free cash flow. Luxury brands Hermès and Cartier are facing steeper slumps in China as wealthy consumers pull back on spending.