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Volvocar Corporation warns of more job cuts to come despite its recent ambitious growth plan

Tuesday, 18 December 2012
Volvocar Corporation is not feeling good about the current situation its operations are going at this moment and through its new CEO Hakan Samuelsson, it now saying that it expects to have further reduced the size of the organization.

In an interview with the Swedish business daily, Dagens Industri, he talks about next year's sales, but ducks the question of how it felt to kick Stefan Jacoby when he was on sick leave after a stroke.

Hakan Samuelsson believe that the worst is over, budgeting for more than 400,000 cars in 2013 and hope that he will not have to cutbacks further.

"Basically we have now terminated all temporary employees in Sweden. We believe that this level is realistic. It could have been even worse, but then we'll get to that discussion when the time comes. For now we can focus on the management side where we'll discuss a number of measures, " said Håkan Samuelsson, to Dagends Industri.
According to the CEO, one of the markets where it has been slow for Volvo car corp is China.
"We need to be much better in China, most preferably, now that we need to compensate for the decline in Western Europe, "said Hakan Samuelsson.

Next year, "the target is still to break even, but that will also be very tough," Mr. Samuelsson said.
When the questions started shifting towards former CEO, Stefan Jacoby  who was fired while on sick leave, Hakan Samuelsson stopped talking and started walking away. When asked if it felt tough to kick him when he was sick, Hakan Samuelsson responded that
"I do not know if I want to comment on it at all. Whatever I say, you can interpret it differently. I have been asked by the board if I wanted to take this job and I accepted. One must respect the fact that a board is the one that consider who is best placed to do the job."


Earlier this month, the CEO said an operational break-even would be "very difficult" to reach this year, with global sales down 6 percent on the year so far, driven by an 11 percent decline in the European market and a 9 percent drop in China.

by Scancomark.com Team

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