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Volvo AB eliminated research and development positions in its quest to increase savings

Friday, 01 March 2013
Truck maker, Volvo Group has made cutbacks in its research and development sector with 200 consultants in the first quarter, according to the company's CEO.

According to Swedish media reports, the Volvo group's CEO, Olof Persson made this known via a presentation he gave on Thursday to investor's day in New York, according to a webcast.

The reduction is a part of Volvo 's strategy for the years 2013-2015, where one of the goals is to reduce R & D costs to an annual rate of Skr11.5 billion. That will be Skr2 billion lower than the rate in the fourth quarter of 2012.

"We need to start by taking down the gross costs and then find efficiencies in operations, "said Persson, according to media reports in Sweden.

At the investor day, Olof Persson went through Volvo's strategic plan for 2013-2015, which focuses on driving organic growth and to implement measures to improve the operating margin of 3 percentage points.
by Scancomark.com Team

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