Volvo Cars said an established SPA3 and HuginCore base lets it keep cutting R&D costs

Volvo Cars said on October 23 that it would continue to reduce research and development costs because it had already established what it called its tech foundation with SPA3 and HuginCore.

The company made the statement in its third-quarter report, published at 07:00 CET, in which it set out an additional reduction of SEK 5 billion in indirect spend and variable costs. It said the measures would lead to a structural reduction of approximately 2,500 jobs globally, of which 2,000 are based in Sweden, by ending consultant contracts, through natural attrition and by targeted exit packages to employees.

Volvo Cars said the full financial effects would be realized by the end of 2027, by which time its overall indirect spend would be almost 25 per cent lower than in the 2024 financial year. It said it had passed its investment peak and returned to what it described as normal and affordable investment levels, around 30 per cent below 2024.

The company restated the separate technology track it is running for China. It said it would reveal and begin production in the middle of next year of the first two of six China-tailored cars developed in closer cooperation with Geely, and that those cars would be developed with a Chinese tech stack and the latest driver-assistance technologies in order to compete in that market.

Volvo Cars reported third-quarter revenue of SEK 66.9 billion against SEK 86.4 billion a year earlier, and an operating loss of SEK 5.6 billion. The company said the result reflected a deteriorating external environment led by market developments in China and the United States.