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Volvo to Restructure Truck Manufacturing in Europe


kscarbel
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Transport Topics / October 16, 2013

Volvo Group said it is planning to restructure its truck manufacturing operations in Europe in a move to improve efficiency.

The Gothenburg, Sweden-based truck maker said it expects the changes to result in staff cutbacks.

During the next two years, Volvo said it plans to relocate its cab trim operations to Gothenburg from Umeå in Sweden, to concentrate its heavy-duty truck assembly in Gothenburg to one line and to concentrate medium-duty truck production in Blainville, France.

“Today’s European industrial structure for truck manufacturing is partly the result of acquisitions, and we now intend to use the various plants in an optimal way,” Volvo CEO Olof Persson said in the Oct. 16 statement. “This will generate more efficient truck manufacturing operations, which will improve our potential to compete successfully in global markets.”

About 900 employees in Europe, including about 700 in Sweden, are working in manufacturing operations that will be relocated. The number of workers that will be affected will depend on manufacturing volumes and the results of union discussions, the company said.

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