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Volvo Cars Uddevalla has decided to reduce its workforce by about 250 people. The background to this decision is the downturn in market demand and the unfavourable stock situation in the USA.

The USA is the largest single market for the Volvo C70, and after having lowered the production volume at the start of the year, the company is faced with having to cut staffing levels too. Volvo Cars Uddevalla currently has a payroll of about 950 employees.

"I informed the staff about the situation earlier today," says Walter Fortgens, President of Volvo Cars Uddevalla.
Last year, Volvo Cars Uddevalla produced about 12,000 Volvo C70s, but production volumes this year are forecast in the region of 8,000 to 9,000 cars.

"Over the past few weeks, we have conducted an extremely detailed and thorough analysis of our staffing situation, set against the number of cars we plan to build. The next stage is to initiate negotiations with the relevant trade union representatives in order to implement this rationalisation process in the best possible way for all concerned," continues Walter Fortgens.

"Despite improved sales performance during the spring as a result of the current marketing drive - we will be faced with an overstaffing situation within Volvo Cars Uddevalla that we simply must deal with," says Curt Germundsson, Senior Vice President Manufacturing, Volvo Car Corporation.

"We are also currently studying the Uddevalla factory and plan to develop the production process further in order to improve efficiency."

Volvo Cars Uddevalla has today informed the regional employment board of Västra Götaland County that it intends to serve notice to 250 employees from the factory.

In addition to working closely with the regional employment board to investigate alternative employment within the region, Volvo Cars Uddevalla is also studying the possibility of transferring employees to other areas within Volvo Car Corporation.
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