Volvo seeking $600M in cost cuts
Volvo Group announced Tuesday it plans to launch a “group-wide efficiency program” that could save the company upwards of $627 million annually.
“The program encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system,” Volvo said in a statement.
The majority of the restructuring charges are expected to impact operating income during 2014, with the with full effect achieved by the end of 2015.
While the company says it identified cost-saving actions that cover a large number of operations and areas, a majority lies within its truck business.
“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.
Earlier this month, Volvo announced a slight dip in truck orders for August.