EMCC European Monitoring Centre on Change

Volvo Powertrain

Volvo Powertrain

Geographic Location

Country: Sweden
Location of affected unit(s): Skövde, Gothenburg and Köping


Sector: Manufacturing
Manufacture of transport equipment
29.3 - Manufacture of parts and accessories for motor vehicles
Number Employed: 6300
Group: Volvo AB

Employment Effects

Announcement Date: 11-11-2008
Planned Job Reductions min: 900
Planned Job Reductions max: 900
Type of Restructuring: Internal restructuring
Foreseen End Date: 11-05-2009

Additional Information

Volvo Powertrain, which manufactures diesel engines, has given redundancy notice to 900 employees at three units in Sweden: Skovde, Koping and Gothenburg. This is as a result of decresing customer demand. 700 of the employees are blue-collar workers and 200 are white-collars. Production volume is to be readjusted to meet market demand. Negotiations with the trade unions were initiated on the 11th November and will be ongoing for six months before any measures can be taken. However, the employees affected by the redundancy notice have to be informed by 31 March 2009 at the latest.

Volvo Powertrain is the world’s largest producer of heavy diesel engines in the 9-18 litre classes. The business unit coordinates Volvo Powertrain's operations and supplies the Volvo Group’s business areas with integrated powertrain systems comprising diesel engines, transmissions and driveshafts. Volvo Powertrain has about 6,300 employees with the majority of them working in production and the rest in product development and administration.

The Swedish authorities applied to the European Globalisation Adjustment Fund (EGF) for aid.