Plus   Neg

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

Editors Pick
Swiss food giant Nestle SA said it is committed to achieving zero net greenhouse gas emissions by 2050, noting that climate change is one of the biggest threats faced by the world. As part of its efforts to achieve the goal, Nestle said it will launch more plant-based food and beverage options that are more environment friendly. Coffee giant Starbucks Corp. is set to open the world's largest Starbucks Reserve Roastery on November 15 on Chicago's Magnificent Mile. It will open in an interactive four-storey glass-clad building in 43,000 square feet space, employing about 200 people. The site at the corner of North Michigan Avenue and Erie Street was previously occupied by Crate & Barrel. United Parcel Service Inc. agreed to pay $8.4 million to the United States to settle allegations that it overcharged federal agencies for package delivery services, the U.S. Justice Department said. Under a General Services Administration or GSA contract, UPS was required to provide GSA with certain lower prices for its services.
Follow RTT