The automotive trade is present process a serious transformation because it strikes in direction of electrification, software program and core computing applied sciences, and direct buyer engagement. According to this, Volvo Vehicles has introduced plans to speed up its ongoing transformation, with a concentrate on value optimization and useful resource effectivity.
To make sure that it will possibly obtain its strategic ambitions, together with changing into one hundred pc electrical by 2030 and lowering its general CO2 footprint, Volvo Vehicles has determined to implement structural adjustments and alter the way in which it really works in sure elements of the group.
Because of this, it has been estimated that round 1,300 office-based positions in Sweden can be diminished, representing round 6 % of the whole variety of staff within the Scandinavian nation.
Though this information is troublesome for these affected, Volvo stated that it’s essential to safe a extra environment friendly and sustainable value base for the longer term. The reductions will adjust to related native necessities and manufacturing line jobs won’t be affected at this stage.
Jim Rowan, the CEO of Volvo Vehicles, highlighted that whereas the associated fee actions initiated final 12 months have began to bear leads to some key areas, financial headwinds, elevated uncooked materials costs, and competitors are more likely to stay a problem to the trade for a while.
“We are going to proceed to spend money on the talents, applied sciences, and instruments wanted to assist create secure and sustainable mobility for our prospects. Implementing structural change and driving elevated effectivity throughout the complete firm permits us to do that,” Rowan concluded.
In 2022, the Geely-owned Volvo Automotive Group recorded an working revenue of $2.2 billion (SEK 22.3 billion), with income of $32.3 billion (SEK 330.1 billion) and world gross sales of 615,121 automobiles. The corporate’s head workplace, product growth, advertising, and administration features are primarily positioned in Gothenburg, Sweden, and it has manufacturing vegetation in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). It additionally has R&D and design facilities in Gothenburg, Camarillo (US), and Shanghai (China).