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Additional personnel reductions within the Volvo Group

As a result of the sharp decline on world markets for heavy vehicles, the Volvo Group is being forced to implement new personnel reductions within its Swedish operations. A total of 1,543 employees are affected when Volvo Trucks, Volvo Construction Equipment, Volvo Penta and Volvo Powertrain today announced new layoffs.
Volvo Trucks is serving notice of termination of employment to 655 unionized employees at the company’s facilities in Göteborg and Umeå.

As a result of a reorganization and cost-efficiency measures, Volvo Construction Equipment is laying off 125 administrative personnel at the plants in Eskilstuna, Hallsberg and Braås. In addition, 100 contracted consultants will leave the company.

Volvo Penta’s downsizing affects 108 employees, of which 56 unionized employees and 52 administrative employees, at the facilities in Göteborg and Vara.

Volvo Powertrain is laying off 655 employees, of which 55 administrative personnel and 600 unionized employees, at the facilities in Skövde and Köping.

“We are conducting ongoing discussions with the unions regarding shortening of the workweek and we would view being able to implement parts of these notices together with such a solution as positive. These agreements are then made locally and are aligned with the needs of the operations,” says Stefan Johnsson, Senior Vice President responsible for human resources within Volvo’s Group Executive Management.

April 22, 2009

For further information, please contact:
Mårten Wikforss, AB Volvo, +46 31 66 11 27 or +46 705 59 11 49