On Tuesday, Volvo Cars unveiled a significant cost-cutting initiative amounting to 18 billion Swedish krona (approximately $1.87 billion) and retracted its previous financial performance projections. This announcement follows a steep decline in the company's operating profit during the first quarter of the year. Operating profit for the first quarter stood at 1.9 billion krona, markedly lower than the 4.7 billion krona reported in the corresponding period last year. The EBIT margin contracted to 2.3%, down from 5% in the same quarter of the previous year, while revenue decreased from 93.9 billion krona to 82.9 billion krona. Volvo Cars is a subsidiary of China's Geely Holding Group.