EMCC European Monitoring Centre on Change

Volvo Trucks

Company/Organisation:
Volvo Trucks

Geographic Location

Country: Sweden
Location of affected unit(s): Tuve and Umeå

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 4800
Group: Volvo Group

Employment Effects

Announcement Date: 01-10-2008
Planned Job Reductions min: 980
Planned Job Reductions max: 980
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2009
Foreseen End Date: 01-10-2009

Additional Information

Volvo Trucks, a division of Volvo Truck Corporation, announced at the end of September 2008 the loss of 980 jobs at its Swedish plants. 820 jobs will be lost in Sweden, in Gothenburg from a manufacturing workforce of 2,100 and 560 at the Umeå plant. Another 400 temporary jobs will be sut in Ghent (Belgium). The company attributed the job losses to the worsening market conditions in all its main markets related to the global financial crisis. At the time of the second job loss announcement in October 2008, it was reported that truck orders had crashed by 99.7% as it took orders for just 115 new lorries in the last three months compared to orders totalling 41,970 in the third quarter of 2007. The The affected units in Umeå and Tuve are the most expensive ones, e.g. the evening and the night shifts. Volvo Trucks is one of the leading heavy truck and engine manufacturers in the world. Volvo built its first truck in 1928 to serve a growing transport industry. Volvo trucks are sold and serviced in over 130 countries.