logo
Plus   Neg
Share
Email

Volvo Plans To End Production Of Buses In Säffle, Sweden By Middle Of 2013

Volvo Bus Corporation, part of the Volvo Group (VOLVY.PK) Wednesday announced that it is planning to concentrate its European production of complete buses in the company's main plant in Wroclaw, Poland, following weak market developments and tough competition in Europe.

Volvo further stated that the planned restructure means that production at the Volvo Buses plant in Säffle, Sweden, will be terminated at end June 2013, provided that the necessary union negotiations have been completed by then.

Volvo stated that the proposed restructure and closure of operations might affect about 330 permanent employees and about 60 consultants.

Volvo Buses, however, reiterated that it will retain its aftermarket function and technical support in Säffle to secure continued good support for the company's Nordic customers.

"The demand for new buses in Europe has dropped steadily over the past few years, paralleled by considerable pressure on prices, particularly in the Nordic markets. By concentrating the production of complete buses in one single plant, we can reduce our costs and thus reverse our negative profitability trend," explains Håkan Karlsson, President Volvo Bus Corporation.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
A US appeals court ruled against an order President Donald Trump issued last month that denies asylum pleas of migrants who crossed the southern border illegally. Two members of the three-judge bench of the 9th US Circuit Court of Appeals said late Friday that the ban is inconsistent with an existing US law, and attempts to over-run Congress. A presidential order signed on November 9 says that t A collection of the popular stories from the cryptocurrency and blockchain space this week. After fluctuating early in the session, stocks moved sharply lower over the course of the trading day on Friday. The major averages showed a substantial move back to the downside following the rebound from early weakness seen in the previous session.
Follow RTT