Volvo Trucks Reducing output
Due to a downturn in truck sales Volvo have announced that they are looking to decrease production in Europe, in total 1400 jobs will be axed across their Belgium and Swedish sites.
During the past few years production was increased to deal with demand and to reduce the lead-time of trucks, however now because of the downturn in business and the increase of raw materials, Volvo will be introducing new cost-reduction schemes.
“The planned reductions are not only being undertaken to rebalance capacity, but also to increase efficiency in production and to compensate for the higher raw material prices that we are now experiencing. To mitigate the impact of cost-inflation a cost-saving program will be introduced throughout the entire Volvo Trucks organization and it will include measures to improve efficiency in the commercial operations,” says Staffan Jufors, president and chief executive of Volvo Truck Corporation.
During the past few years production was increased to deal with demand and to reduce the lead-time of trucks, however now because of the downturn in business and the increase of raw materials, Volvo will be introducing new cost-reduction schemes.
“The planned reductions are not only being undertaken to rebalance capacity, but also to increase efficiency in production and to compensate for the higher raw material prices that we are now experiencing. To mitigate the impact of cost-inflation a cost-saving program will be introduced throughout the entire Volvo Trucks organization and it will include measures to improve efficiency in the commercial operations,” says Staffan Jufors, president and chief executive of Volvo Truck Corporation.
