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© aydindurdu-dreamstime.com General | September 24, 2013

New efficiency program at Volvo

The Volvo Group has decided to combine a number of actions into a Group-wide efficiency program. The program encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system.
The actions’ common feature is that they are the result of the implementation of the Group’s three-year strategies and that they are designed to enhance efficiency and competitiveness. It is estimated that the program will entail restructuring costs totaling approximately SEK 5 billion, whereof approximately SEK 0.5 billion is expected to have no impact on cash flow.

The majority of the restructuring charges are expected to impact operating income during 2014. Savings are expected to amount to approximately SEK 4 billion annually, and will generate results gradually in 2014, with full effect achieved by the end of 2015.

The identified actions cover a large number of operations and areas, whereof a majority lies within the truck business area. The actions will be announced continuously as they are implemented. “We are currently combining these actions into a comprehensive program, in order to provide an improved overview of both the effects and the implementation schedule of our extensive and comprehensive strategy,” says Olof Persson, Chief Executive Officer of the Volvo Group.

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