Volvo to cut costs as US-China trade war dents profits

Volvo Cars, owned by China's Geely, reported higher full-year revenue on Thursday, but said its profit margins had slipped and were expected to remain under pressure this year.

STOCKHOLM: Volvo has announced plans to cut fixed costs by 2 billion Swedish crowns (US$214mil), becoming the latest carmaker to warn that pricing pressure and tariffs arising from the China-US trade war were denting profitability.

Carmakers are under pressure from trade conflicts, hefty investment needed to develop electric and driverless cars and an overall downturn in the car industry.