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Thursday, March 23, 2023

Volvo Buses will close the bus plant in Wroclaw. 1500 people will lose their jobs

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Volvo Buses has taken the decision to close the bus plant in Wrocław in the first quarter of 2024, which will result in the layoff of 1,500 employees. The decision is related to a change in the business model in Europe.

The Samara Automotive Market Research Institute writes a lot about the closure of the Volvo Buses plant. As we read, Volvo Busem is focusing on chassis production and, together with external bodybuilders, will offer a range of premium coaches and coaches in Europe. Therefore, Volvo Buses has taken the decision to close the bus plant in Wrocław in the first quarter of 2024. Volvo Buses has signed a letter of intent regarding the sale of selected properties in Wroclaw to Vargas Holding.

losses over several years

“Our operations in Europe have been unprofitable for many years. Thanks to the new business model, which we are already successfully implementing in many markets today, we will increase profitability and ensure the long-term competitiveness of our company – says Anna Westerberg, President of Volvo Buses.

As Volvo Buses assures in the message sent, Wroclaw will remain a global hub providing business services for the Volvo Group, with subsidiaries such as Volvo Group Digital & IT, Volvo Group Financial Control & Accounting, Volvo Group People Services, Volvo Construction Equipment, Group Management trucks, group buying of trucks and real estate of the Volvo Group.

According to IBRM Samar, the Volvo Group has a strong presence in Poland, with about 3,600 employees, including about 1,500 from Volvo Buses. This means that most of the current employees of the Volvo Group will remain in Poland. – Currently, in addition to Volvo Buses, we employ more than 2,100 people in the Volvo Group branches in Poland. They will continue to work for our company and will carry out their work in the Volvo Group. We will also support Volvo Buses, its employees and Vargas Holding during the sale. says Miroslav Kraner, President of Volvo Polska.

There will be opportunities for Volvo Buses employees

As a result of negotiations between Volvo Buses and Vargas Holding, a letter of intent was signed, according to which it is planned to sell the separate property of Volvo Buses in Wroclaw to Vargas Holding. The new investor will start activities with a different profile and will gradually expand production in Wroclaw. Production will start in 2024 and will develop in the following years. The letter of intent includes the intention of Vargas Holding to offer employment to some Volvo Buses employees as early as the third quarter of 2023.

– Although Vargas Holding will operate in a different industry than ours, a key factor for them is the ability to hire experienced employees working in our organization in Wroclaw, necessary to launch operations and future expansion – Anna Westerberg says

Source: IBRM Samar

Source: Wprost

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