Volvo Cars has hit another pothole on the road to recovery, with shares plunging almost 30% on Friday after the Swedish automaker reported a third-quarter operating loss of 3.7 billion Swedish crowns ($373 million).

Analysts had expected a loss of just 724 million crowns. That’s not a financial wobble; it’s a full-blown skid. Revenue fell nearly 50%, while gross margin shrank to 14.7%, down from 20.4% a year earlier.

The response? Another 5 billion crowns in cost savings and 2,500 additional job cuts, mostly in Sweden, following 3,000 previously announced reductions.

Consultants and natural attrition will take some of the hit, but the human cost of Volvo’s turnaround is becoming harder to ignore.

CEO Håkan Samuelsson, lured out of retirement in 2025 to steady the ship, admitted the quarter was “very disappointing”.

He now faces a business squeezed by US tariffs, uneven EV demand and brutal competition in China, where discounting has become an expensive national sport.

Worse, Volvo’s crucial EX60 electric SUV is running late. Just 5,000 of the 40,000 units planned for this year have been built, hampered by battery-assembly problems. Not ideal when your recovery plan depends on selling the things.

Incoming chief executive Klaus Zellmer inherits the challenge next year, with analysts warning the outlook remains grim.

For a brand built on safety, Volvo’s financial future suddenly looks anything but secure.