Volvo Cars shares plunge nearly 30% after the Swedish carmaker swings to a loss and plans to cut 2,500 jobs

The operating loss hit 3.7 billion Swedish crowns, against a 5.8 billion profit a year earlier and far worse than the 724 million loss analysts expected. China was the biggest drag, with revenue there falling by almost 50%. About 2,000 of the cuts will fall in Sweden, on top of 3,000 announced earlier. Chief executive Hakan Samuelsson called the quarter 'very disappointing'.

Steep US tariffs under President Trump are squeezing margins on its American business.

Volvo has pulled its full-year outlook and is targeting a further £376m in savings.

Volvo is majority-owned by China's Geely Holding, yet Chinese brands are battering its sales.