Volvo Construction Equipment gives notice of redundancy to 850 employees in Sweden

Volvo Construction Equipment gives notice of redundancy to 850 employees in
Sweden

Volvo Construction Equipment, that earlier this autumn announced a notice of
redundancy to 500 employees in Sweden, is today giving notice to an additional
850 employees in Sweden. This is due to the slow down of the global construction
equipment market. 


The weakening of the market which started in North America during last year and
was later spread to Europe has now developed into a global slow down in the
construction equipment market. The global financial crisis has further
accelerated the weakening of the business cycle. 

“The actions we are taking now are needed in order to adjust production capacity
to declining demand and to ensure that the company is coming out stronger from
this downturn,” says Yngve Rosén, President of Hauler Loader Business Line,
Volvo Construction Equipment.  

It is estimated that out of the additional 850 employees that has now been given
notice within Volvo CE in Sweden, approximately 10% are white collars and the
rest are blue collars. 
All Volvo CE's locations in Sweden are affected. The distribution in the number
of redundancies of blue collars is indicative as follows: Arvika 200, Braås 200,
Eskilstuna 200 and Hallsberg 150. Distribution in number of redundancies of
white collars per each location is not yet decided. 

Negotiations with the unions start immediately. 

October 23, 2008

Reporters who want more information, please contact Klas Magnusson, Volvo
Construction Equipment, +32 475 576214


Volvo Construction Equipment is a major international company developing,
manufacturing and marketing equipment for construction and related industries.
Its products, leaders in many world markets, include a comprehensive range of
wheel loaders, hydraulic excavators, articulated haulers, motor graders and
compact equipment. Volvo Construction Equipment is part of the Volvo Group, one
of the world's leading manufacturers of trucks, buses and construction
equipment, drive systems for marine and industrial applications, aerospace
components and services. The Group also provides complete solutions for
financing and service.