The decision to end production in Europe is due to years of losses in the European market. With the new business model already successful in other markets, Volvo Buses aims to have a leaner structure, improved flexibility, and better meet market requirements and customer demands.
“With this business model that we already apply successfully in many markets, we will improve profitability and secure our long-term competitiveness”, said Anna Westerberg, President of Volvo Buses.
Volvo Buses will continue to concentrate on chassis production in Europe and leave Volvo-based bodies to others. The company will still have a customer interface, offer a complete range of buses and coaches in partnership with selected external bodybuilders, and provide strong uptime service and high-standard safety and quality.
Volvo Buses will continue bodybuilding manufacturing in Wroclaw until the first quarter of 2024. The company will deliver orders for complete buses and coaches in Europe from the Wroclaw plant as planned while giving full service and support to both existing and new fleet offerings.
As part of the transition, Volvo Buses has signed a Letter of Intent with Vargas Holding to divest Volvo Buses’ premises in Wroclaw and repurpose the facility for future growth. The LoI includes Vargas Holding’s aim to offer employment to parts of the Volvo employees, some as early as the third quarter of 2023.
The decision to end production of complete buses and coaches will affect around 1,600 positions at Volvo Buses, with approximately 1,500 based in Wroclaw. Volvo Buses has initiated discussions with respective unions and will work with Vargas Holding, local authorities and other parties to support affected employees in finding new employment opportunities.
The closure of the Wroclaw plant, where electric buses are also produced, will occur in the first quarter of 2024.
Source: Volvo Group
