Volvo posts losses and cuts jobs as EX60 production lags behind orders
Volvo Cars reported a third-quarter loss of SEK -3.7 billion ($373 million) on October 23, 2026, alongside plans to cut 2,500 jobs globally as production of its new all-electric EX60 SUV faces delays. The Swedish automaker built only about 5,000 units since manufacturing began in April, despite accumulating over 50,000 orders in Europe. The production bottleneck compounds financial strain as the company attempts to lower its break-even point during a challenging market environment marked by de-globalization, hypercompetition, and climate change.
Advanced technology strains Torslanda plant manufacturing lines
Erik Severinson stated it has been difficult to start production as planned because the new SPA3 platform requires significant factory adaptations. Volvo invested around £750 million in its Torslanda facility near Gothenburg to build vehicles on the architecture, which introduces a radical megacasting production method and a cell-to-body structural battery design. Volvo cited these complex manufacturing changes as the main reason behind the delay, distinguishing the setback from the software issues that previously affected the rollout of the larger EX90 in 2024.
US deliveries face short-term limits amid prioritized European allocation
Volvo initially expected to sell about 7,000 EX60s in the United States by the end of 2026, but a dealer update in late September indicated deliveries are on pace to reach only a fraction of that goal. Volvo spokesperson statements confirmed that availability will remain limited in the short term as Europe receives priority allocation for existing inventory. The company expects to distribute significantly more inventory to dealers in early 2027 as production volumes improve.
Financial turnaround hinges on volume growth and upcoming vehicle launches
Håkan Samuelsson warned that the financial impact of the EX60 will not be realized until volume picks up at the factory. Samuelsson stated that the EX60 will serve as a cornerstone of Volvo’s comeback plan as one of its most profitable models, though its contribution to the bottom line is currently delayed. The job cuts affect 2,000 employees based in Sweden as part of a wider restructuring. The company is betting on the SPA3 platform to lower production costs and support its broader product push of 13 new cars through the end of 2030.
Rival luxury electric vehicle production scales up
While Volvo works to resolve its manufacturing bottlenecks, rival luxury automakers are experiencing stronger early momentum with next-generation electric models. BMW reported that its iX3, built on the Neue Klasse platform and launched in October 2025, secured over 100,000 orders. To meet demand, BMW’s plant in Debrecen, Hungary, ramped up faster than any facility in company history, adding both a second shift and a subsequent third shift to run operations around the clock.
Frequently Asked Questions about the Volvo EX60 production rollout
Why is Volvo experiencing delays with the EX60?
Volvo attributed the slower-than-planned production ramp-up to new industrial technology associated with the SPA3 platform, specifically a cell-to-body structural battery design and megacasting manufacturing methods at the Torslanda plant.
How many orders has Volvo received for the electric SUV?
Volvo has received over 50,000 orders for the EX60 in Europe since production began in April, compared to approximately 5,000 units built so far.
What financial impact did the production lag have on Volvo?
Volvo posted a third-quarter loss of SEK -3.7 billion (nearly £280 million), with its operating profit margin falling to -5.6%, prompting the company to announce 2,500 global job cuts.
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