Volvo Cars announced 18 billion Swedish crowns ($1.87 billion) in cost cuts and a restructuring of its U.S. operations on Tuesday and withdrew its earnings forecast for the next two years, sending shares down 10%.

Volvo Car AB is embarking on an 18 billion Swedish kronor ($1.87 billion) cost cutting program to counter tepid demand and trade tensions weighing on the auto industry.

Volvo Group said its so-called "cost and cash action plan" would include reductions in investments and redundancies at its operations across the globe.