The Volvo Group has announced it will 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.
Volvo estimates the program will include restructuring costs of $900 million with the majority of the restructuring charges expected to impact operating income during 2014. Savings are expected to amount to approximately $725 million annually with full effect achieved by the end of 2015.
Since January this year, Volvo says it has done extensive work to identify the measures required to rationalise and enhance the efficiency of the operations within the framework of their strategies. The identified actions cover a large number of operations and areas, a majority of which lies within the truck business area.
“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,” said Olof Persson, CEO of Volvo Group.
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