EMCC European Monitoring Centre on Change

Volvo PV

Company/Organisation:
Volvo PV

Geographic Location

Country: Sweden
Location of affected unit(s): Göteborg and Olofström

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 6802
Group: Volvo Group

Employment Effects

Announcement Date: 25-06-2008
Planned Job Reductions min: 1200
Planned Job Reductions max: 1200
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 01-09-2008
Foreseen End Date: 31-12-2008

Additional Information

Car manufacturer Volvo PV has mounted an austerity package that includes job reductions for 1,200 employees mainly at its factories in Göteborg (Torslanda and Angered) and in Olofström. Currently the Torslanda plant has 4,763 employees and the Angered one has 190 employees with 1,849 at Olofström. The cuts will mainly take place at the factory in Torslanda (a suburb to Göteborg) and the plan is that the reductions will be finished by the end of 2008. Reasons given for the dismissals were the low dollar and rising prices for raw materials.