Volvo has announced a cost-saving program worth one billion euros. It envisages, in particular, a temporary pause in operations at several plants and the reorientation of Chinese enterprises exclusively to the production of electric models — this is how the company is trying to mitigate the consequences of US tariff policy. The increase in import duties on Chinese electric vehicles to 100% has hit the business hard, and weak demand in the European market has added to the problems. As a result, Volvo's operating profit has already fallen by 16%, and the company admits: the plan to sell 800,000 cars annually is now in question.
Volkswagen has also found itself in a difficult position. In the first three months of 2025, the group's net profit decreased by almost a fifth — from 5.1 billion to 4.1 billion euros. The reasons are the trade conflict between the US and China, which significantly reduced sales in a market that provides VW with over 30% of its total sales volume, as well as the constant growth of expenses for creating electric cars. The group's management does not hide its dissatisfaction and is already considering the possibility of changing production plans at American sites and cutting investments in Chinese projects.
Experts warn: this may be just the beginning. If the trade confrontation does not end quickly, over the next two years we can expect layoffs of up to 50,000 workers at European enterprises, freezing or relocation of investments worth over 30 billion euros, as well as a significant restructuring of global supply chains, including the relocation of electric vehicle production to Southeast Asia.
The situation is escalating. Manufacturers have to maneuver between different markets, investor demands, and political decisions, counting multi-billion losses and revising plans. For ordinary buyers, this is still almost imperceptible, but analysts believe that by the end of 2025, changes will be felt in price tags as well. Thus, one signature of Trump has shaken the global automotive industry and, likely, launched one of the most large-scale reorganizations of the sector in recent decades.
