The weakening of the market which started in North America during last year and was later spread to Europe has now developed into a global slow down in the construction equipment market. The global financial crisis has further accelerated the weakening of the business cycle.
“The actions we are taking now are needed in order to adjust production capacity to declining demand and to ensure that the company is coming out stronger from this downturn,” says Yngve Rosén, President of Hauler Loader Business Line, Volvo Construction Equipment.
It is estimated that out of the additional 850 employees that has now been given notice within Volvo CE in Sweden, approximately 10% are white collars and the rest are blue collars.
All Volvo CE’s locations in Sweden are affected. The distribution in the number of redundancies of blue collars is indicative as follows: Arvika 200, Braås 200, Eskilstuna 200 and Hallsberg 150. Distribution in number of redundancies of white collars per each location is not yet decided.
Negotiations with the unions start immediately.
October 23, 2008
Reporters who want more information, please contact Klas Magnusson, Volvo Construction Equipment, +32 475 576214
