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Volvo to relocate bus production from Sweden to Poland


2012-10-04



Volvo on 3 October announced plans to concentrate its entire European production of complete buses in Wroclaw, as part of a cost-cutting drive designed to improve profitability amid weak demand and tough competition in Europe. The decision will affect about 400 jobs at the group’s plant in Saffle, Sweden, which will only retain aftermarket and technical support functions.

The plant in Wroclaw is Volvo’s main production facility in Europe, with four times the capacity of Saffle. The group expects that by concentrating production there it will achieve the economies of scale essential to competing successfully on a market characterised by strong price pressures and low volume growth.



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