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.
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