Volvo Buses To Shut And Divest Bodybuilding Plant In Poland; To Cut Jobs

Swedish vehicle major Volvo AB CL (VOLVY.PK) said on Thursday that its Volvo Buses has decided shut bodybuilding plant in Wroclaw of Poland, during the first quarter of 2024. This also involves slashing of 1,600 positions at Volvo Buses, that includes around 1,500 workers based in Wroclaw.

Commenting on the decision, Anna Westerberg, President of Volvo Buses said, "Our business in Europe has been loss-making for years. With this business model, that we already today apply successfully in many markets, we will improve profitability and secure our long-term competitiveness."

Consequently, Volvo Buses has inked a Letter of Intent to sell its premises to Vargas Holding.

According to the company, the restructuring of business calls for a provision of approximately SEK 1.3 billion, that will hurt its profit in the first quarter of 2023.

Post closure, Volvo Buses will focus its production on chassis and together with external bodybuilders offer customers in Europe a complete range of city and intercity buses as well as coaches.

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