Volvo Automotive is facing a $5.3 billion restructuring, and the automaker is in the process of filing a reorganization plan with the Securities and Exchange Commission, according to a company statement.
The restructuring is expected to be completed in early 2018, according the statement.
Volvo is facing $4.4 billion in debt, and it will need to sell off about $1.6 billion in assets, according company officials.
Volva says the restructuring will not result in any layoffs, but it will “take a substantial hit to the business,” according to the company.
“The restructuring will also include the sale of approximately $1 billion of its assets,” the statement says.
Volts financials are expected to come out on the heels of a record-setting quarter, with Volvo sales surpassing 3.4 million units.
Volvos sales were up 15 percent in the first quarter of 2018, the company said, according.
Volta, the parent of Volvo, says it has not had any financial difficulties in its six-year history.
The company also says it will continue to invest in research and development, and that it has a long-term strategy to continue investing in the company, which it says will lead to “a sustainable long-run profit.”
Volvoes annual revenue rose 7 percent to $1,053.7 million.
The stock fell 10 percent in after-hours trading on Wednesday, to $10.93.