Volvo Trucks trims staff in Umeå and Skövde
VOLVO TRUCKS TRIMS STAFF IN UMEÅ AND SKÖVDE Volvo Trucks has today informed the Regional Employment Boards of Västerbotten and Västra Götaland counties that the company has served notice to a total of 650 employees. The cutbacks are the result of improved rationalization and increased co-ordination of new products in combination with expectations that demand will drop somewhat in the coming year. During the past two years, Volvo Trucks' sales in Europe rose gradually to higher levels than ever. In the face of such strong demand, the company increased its production rate both in order to meet current demand and also to respond to the accumulating order backlog. Volvo Trucks has now caught up with its order backlog and estimates that the demand for heavy trucks in Europe in 1999 will drop slightly compared with the exceptionally high levels recorded in 1998. The production programme has therefore been trimmed slightly to meet expected 1999 demand. The production start for Volvo FM in the second half of 1998 signalled continued implementation of the company's global modular concept, and this common platform has brought with it benefits in the form of rationalization. The coming months will see the gradual phasing-out of the heavy FL range, so there will no longer be any need for extra staff to produce both truck ranges in parallel. As a result, 350 workshop jobs have to be trimmed at the Umeå plant. The Umeå cab plant employs a total of 2,300 people. As a result of rationalization and a somewhat lower production pace, the Volvo Truck Components plant in Skövde is overstaffed by 300. The Skövde plant employs 3,200 people in the production of castings and heavy diesel engines, with engines supplied to Volvo Trucks, Volvo Buses, Volvo Penta and Volvo Construction Equipment. The company is now starting negotiations with the trade unions on how to handle the cutbacks. February 16, 1999 For more information, please contact: Tommy Kohle, Tel: +46 31-66 65 17, mobile phone: 0706-766517 e-mail: vtc1.kohle@memo.volvo.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/16/19990216BIT00420/bit0001.doc http://www.bit.se/bitonline/1999/02/16/19990216BIT00420/bit0002.pdf