Husqvarna Shifts Production Amid Rising Competition in Robotic Lawn Mowers
Husqvarna's Strategic Moves in Response to Market Pressures
By Jesus Calero
Oct 21 (Reuters) - Husqvarna has moved some production of robotic lawnmowers from Britain to the Czech Republic and is weighing increased manufacturing in Asia, its CEO said on Wednesday, as cheaper rivals chip away at its lead in the market it pioneered three decades ago.
Impact of Market Conditions on Sales
Drought across much of Europe left less grass to mow during the third quarter, hurting sales at a time when consumers were already holding back on garden equipment purchases.
But the problems go beyond the weather.
Loss of Market Share and Competitive Challenges
"We have lost some volume this year," CEO Glen Instone told Reuters, saying Husqvarna had lost more European market share in units sold than in sales value.
The Swedish company has held its ground among traditional dealers, but faces much tougher competition in shops and online, sales channels in which it has historically been less active.
That is forcing it to reconsider how much it can cut prices without undermining the premium positioning that has long distinguished its products.
Pricing Strategies and Brand Positioning
Instone said Husqvarna would likely have to lower the roughly €1,000 ($1,122) starting price of its Husqvarna-branded robotic mowers, though he ruled out competing with machines costing less than €500.
Production Relocation and Cost Management
Shifting Manufacturing to Czech Republic and Asia
The challenge extends to how and where Husqvarna makes its machines. Instone said the company had moved some robotic mower production from Newton Aycliffe in Britain to Czechia to cut costs. The transfer was completed this autumn and affected around 50 roles in the British plant, a company spokesperson said.
Instone said Husqvarna was also considering production in Asia, although longer shipping times and the need to hold more stock could eat into potential savings from such a move.
Expansion of Battery-Powered Tool Production in Asia
The company said earlier on Wednesday it was moving production of some battery-powered handheld tools from two European factories to Asia, including its own plant in China and external suppliers, with the move to be fully effective in 2028. It did not specify how many jobs would be affected.
Just last year, Husqvarna had begun moving production from China to Europe to reduce its exposure to US tariffs.
Regulatory and Financial Impacts
EU Investigation and Competition with Chinese Manufacturers
Its Czech subsidiary also initiated an EU investigation into alleged dumping of Chinese robotic mowers last year, although Instone said Husqvarna could compete without additional duties.
Financial Performance and Outlook
Despite 935 million Swedish crowns ($94.4 million) of realised savings this year, weak sales and rising costs have continued to erode Husqvarna's earnings. But Instone said further savings could restore profitability in 2027 even without European demand recovery.
The company's shares plunged around 10% to a 14-year low in Stockholm after a bigger-than-expected quarterly loss.
Currency Exchange Rates and Reporting Notes
($1 = €0.8910)
($1 = 9.9050 Swedish crowns)
(Reporting by Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
