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Volvo car Corp Confirms operations reduction in Torslanda

Wednesday, 05 September 2012
Volvo car restructure strategy going forward as the future looks really uncertain. Reports have emerged to show that production rates in its core Torslanda production centre will decrease.
The Volvo Cars CEO, Stefan Jacoby is reported to have said that there is no need to go on full - time employment in the wake of declining sales.

The weak sales of Volvocars forces the company to reduce production in the fall rate in Torslanda factory in Gothenburg. As a consequence, about 200 - 300 people who have been hired from agencies will not see their contracts extended, we reported recently.

Volvo Cars has so far put the lid on the data, but at Wednesday's press conference in conjunction with the interim report, the company commented on the issue.
Production rates shall be cut down from 57 - 50 cars per hour from October, confirms CEO Stefan Jacoby.

287 employees will be affected, according to Chief Financial Officer Jan Gurander, but it is only temporary employees who will be affected.

"Today, we have no plans to terminate the employment of full-time, "was the message from Stefan Jacoby.

According to him, there are some additional flexibility in the workforce, about ten percent.

Staffing company Lernia, will be affected by production cutbacks, and has issued notice of layoffs of 100 people according to reports.

According to the company's interim report, Volvo Car Group today reported an operating profit (EBIT) of Skr239 Million over the first six months of 2012, down from an EBIT of Skr1,529 Million over the same period in 2011.

Revenue over the period increased by 3.9 per cent to Skr65.3 Billion compared with the first half of 2011 (Skr62.9 Billion). Volvo Car Group's global retail sales for the first half of 2012 amounted to 221,309 cars, down 4.1 per cent versus the same period in 2011 (230,746). The result shows Volvo Car Group's resilience despite challenging market conditions.
by Scancomark.com Team

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