The Volvo Car Corporation and Semcon AB have signed a letter of intent to confirm negotiations in order to clarify the interests of both parties regarding an agreement under which Semcon will take over some of the services currently provided by the Technical Service department within Volvo Car Corporation.
"Within the structure of a large global organisation, the company has succeeded in implementing a methodical process of improvement that pervades every aspect of its operations. Volvo Trucks is an excellent example of quality trends in Sweden."
Volvo Aero and the two main owners of Norsk Jetmotor AS have now signed a purchase agreement whereby Volvo Aero acquires 66.6 percent of the shares in the company.
Today the board of Volvo Excavators announced plans to close down the manufacturing of excavators at the Eslöv plant. A total of 500 employees will be affected by the decision. The customary right of employee participation in the decision-making process will start immediately.
Volvo has decided to initiate measures to strengthen competitiveness and to increased the Group's profitability level. Efforts to improve internal efficiency are being intensified. As part of the effort, a review of the Group's cost level and personnel situation have been undertaken.
Volvo Trucks deliveries in January-October recorded a total of 68,420 units, an increase of 23 per cent, compared with the same period last year. Sales showed the following distribution:
A comprehensive overhaul of the level of costs within Volvo is currently under way with a view to improving the Group's profitability. As part of this project, the Group's present employee situation is also being reviewed.
Staffan Carlson has been appointed new president of the Volvo Group?s internal bank, Volvo Group Finance. He assumes his new position on December 1, 1998.
The success story for Volvo's heavy-duty trucks in the VN Series continues.