The desire for what Volvo Trucks has to offer is not the same as it was just one year ago. Now the factory is cutting back sharply.
Volvo Trucks has announced that there will be changes in production as a result of falling demand for trucks.
The factory in Tuve, Gothenburg, will be affected by savings and working hours that must be rescheduled.
– We are moving the front body trimming, where we prepare the front bodies for assembly, from the evening to the day shift to accommodate reduced demand, says Helena Lind, press manager at Volvo Trucks.
The drop in demand is part of a larger trend in the automotive industry, where several manufacturers are experiencing similar challenges. At the factory in Tuve, it has already been noticed that the production speed has decreased.
– A year ago we built 140 cars a day, now we are down to around 100. But I don't know much yet, we will sit down and negotiate with Volvo, says Ulf Albinsson, local chairman of IF Metall.
READ ALSO: Peugeot e-3008 must be charged twice to cover 1,000 kilometers
Helena Lind emphasizes that the changes will primarily affect employees on fixed-term contracts and external consultants.
– This will only affect consultants and fixed-term employees, not those who are permanently employed, she says.
However, the Swedish car industry, where the production of heavy vehicles plays a significant role, has not been isolated from the challenges faced by many European manufacturers.
– Out in Europe, the big manufacturers have said that they will reduce by around 30 percent. I think Volvo seems to have done quite well, says Peter Bryntesson of the Vehicle Components Group.
Among the employees, however, the changes cause concern, especially for those without permanent employment. At the same time, there has been an understanding of the need to adapt production to current demand.
– Worried, what's that word? But it is boring and sad, above all for the colleagues. But it is a reality, if you don't sell trucks, you can't build them. You can no longer build for storage, it must be for sale, says Ulf Albinsson.
Although the situation may seem uncertain, Bryntesson believes that new opportunities may also arise.
– For Volvo, this could also be an opportunity for renewal. Now that you are down to smaller volumes, there is an opportunity to switch to electrification, but then you have to involve truck drivers and other actors, you have time for that now, says Peter Bryntesson.
He also sees a possible recovery ahead.
– I think it may start to ease at the end of next year, he says.
It is not the first time that Volvo has had to cut back this year. Back in March, Reuters wrote that the truck manufacturer fired 250 employees because the order books could not carry their wages.
Read more exciting news from and about the world of cars right here!
