European Luxury Car Brands Battered by EV Transition

KatadataOTO – The electrification commitment being pushed in several countries has turned out to be a nightmare for manufacturers of luxury cars from Europe.

Recently, Volvo announced plans to lay off 3,000 workers globally due to electrification challenges and economic policy uncertainty.

Porsche will also lay off thousands of workers, explaining that the slow adoption of electric cars requires them to offer more conventional engine vehicle models.

To remain competitive, Porsche is developing other alternative vehicles that are also environmentally friendly, such as hybrids and PHEVs (Plug-in Hybrid Electric Vehicles).

Photo : Porsche

The luxury car manufacturer confirmed it will make adaptive changes to its product and corporate planning to respond to the slow transition phase.

Meanwhile, according to Volvo, the layoffs affect about 15 percent of its total office-based workers spread across various countries globally.

The affected workers include 1,000 consultants and 1,200 employees in Sweden, effective this year.

“The decision we announced is a very difficult one, but it is an important step to strengthen Volvo Cars to become more resilient,” said Hakan Samuelson, CEO of Volvo, as quoted by Carscoops on Wednesday (28/05).

He highlighted that the automotive industry is facing severe challenges. Therefore, efforts need to be made to reduce operational costs.