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Volvo closes cab production in UmeŚ, Sweden as it shift production

Thursday, 17 October 2013
The Volvo Group announced that it has made a directional decision to implement changes in the European industrial structure for truck manufacturing.
At least 500 jobs from UmeŚ in cab production department will be moving to Gothenburg. IF Metall, the worker’s union at Volvo in UmeŚ writes in a statement that its decision is "a deathblow to industrial jobs in UmeŚ, northern Sweden." Some 900 employees, including 700 in Sweden, will be affected by the decisions.
Volvo truck Volvo
Volvo says that the aim is to enhance the efficiency of manufacturing and thus strengthen competitiveness. The intention is to, step-wise over the next two years, relocate cab trim operations from UmeŚ to Gothenburg, to concentrate the assembly of heavy duty trucks in Gothenburg to one line, and to concentrate the assembly of medium duty trucks to Blainville.

The directional decision is expected to result in staff cutbacks and operational changes. The action corresponds to a minor part of the financial impact of the previously announced Group-wide efficiency program.

“Today’s European industrial structure for truck manufacturing is partly the result of acquisitions and we now intend to use the various plants in an optimal way”, says Olof Persson, Volvo’s President and CEO. “This will generate more efficient truck manufacturing operations, which will improve our potential to compete successfully in global markets”.

The factory in UmeŚ specialized simultaneously in  metal stamping, welding and painting cabins, according to a press release.
By Scancomark.com Team

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