The company has been struggling to return to profitability due to weak demand for its cars as well as a squeeze on its market share, which saw its sales fall by 6% in 2012.
In order to turn this around, Volvo’s new CEO Hakan Samuelsson told The Wall Street Journal during the North American International Auto Show in Detroit that the company is now looking to cut more than $153m in costs.
Cuts are expected to be made across the company’s operations including marketing, administrative and consultancy areas of spend.
“Considerable cost cutting is required to counter that, especially when you consider that we didn’t even start at a break-even point,” said Samuelsson.
He added that the company was looking to break-even in 2013 although this would be a very difficult challenge because of the current state of the European automotive market and it was more likely that this would be achieved by 2014.
Despite the cuts, Volvo is looking to expand in China and is planning to make investments here expanding its retail network and adding production facilities.
