‘More efficient basis for the future’
Volvo tightens its belt to ‘go more efficiently into the future’. In concrete terms, this means that 1,300 jobs will disappear, all in Sweden.
The transition to a fully electric model range naturally costs claws of money and that is why Volvo says it is forced to downsize. This is to ‘guarantee a more efficient and sustainable cost picture for the future’. Nice words, but at the bottom it means that about 1,300 jobs will be lost.
These are office jobs, all in Sweden, accounting for about six percent of the total Swedish workforce. Some 1,100 of them are at the headquarters of Volvo’s passenger car division. Where the remaining 200 jobs will disappear has yet to be determined. So uncertain times for those who work in the office for Volvo in Sweden.
CEO Jim Rowan explains the planned contraction: “The cost measures we took last year are starting to bear fruit in some key areas, such as material costs. However, it is clear that we need to do more. Economic headwinds, increased raw material prices and increased competition are likely to continue to challenge our industry for some time to come.”
Volvo wants to sell only electric cars by 2030. In March 2021, the company kicked off a transition to a more electric offering for the coming years. The Volvo EX90 has already been unveiled as one of the new pure electric models and we will soon be introduced to the Volvo EX30.
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– Thanks for information from Autoweek.nl