Kongsberg Automotive (KA) has announced an overhead cost reduction plan that is anticipated to yield annual savings of €15m ($17.67m).
The plan, revealed during the first quarter (Q1) presentation in May 2025, aims to enhance KA's financial performance and is in addition to a cost adjustment programme that was announced previously.
Around 150 positions will be impacted by this cost reduction initiative.
The cost reduction measures are set to be largely completed within the year, although some aspects will continue into Q3 2026.
Concurrently, KA is adjusting its direct labour levels in response to a softening market, especially in the European and North American truck segments.
This market downturn is largely attributed to US tariffs and broader geopolitical tensions.
As a result, market forecasts for the latter half of this year have been revised downwards, falling short of KA's initial expectations.
The company plans to closely monitor the situation and will provide further updates in its Q2 presentation on 12 August 2025.
Last month, KA appointed Thomas Danbolt as the executive vice president of the Flow Control Systems business area, effective no later than 1 October 2025. Danbolt will operate from KA's facility in Raufoss, Norway.
KA secured a new four-year contract in May for its Dog Clutch Actuator, which is tailored for gear-shifting and decoupling in multi-speed transmissions across various vehicle applications.
This product will be manufactured at KA's Wuxi facility and supplied to an original equipment manufacturer (OEM) in the electric commercial vehicle segment.
The company’s product portfolio includes driver and motion control systems, industrial driver interface products, and fluid assemblies.
"Kongsberg Automotive announces cost reduction plan" was originally created and published by Just Auto, a GlobalData owned brand.
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