Volvo to Book $123 Mln Provision on European Bus Restructure

Volvo Group has allocated $123 million to cover the costs of restructuring its European bus operations, the Swedish automaker announced.

The restructuring plan, which was approved by Volvo Group’s Board of Directors on Thursday, will be implemented over the next few years and is expected to result in cost savings of approximately $150 million annually.

The Volvo Group’s European bus operations, which include Volvo Buses and VDL Bus & Coach, have been facing significant challenges due to changes in the market, such as new technologies and the emergence of new competitors.

The restructuring plan is aimed at increasing efficiency and reducing costs through improved productivity and cost savings, Volvo Group said in a statement.

The plan involves the consolidation of activities, streamlining of parts and services, and the optimization of production and distribution networks.

Furthermore, Volvo Group has also set aside $123 million in provisions to cover potential costs associated with the restructuring, including employee severance payments and other related costs.

The Volvo Group said it expects the restructuring to be completed by the end of 2021.

The Swedish automaker’s Board of Directors has approved a provision of $123 million to cover the costs associated with the restructuring of its European bus operations. The restructuring, which is slated to be implemented over the next few years, is expected to generate savings of approximately $150 million annually.

The plan involves streamlining activities, optimizing parts and services, and consolidating production and distribution networks. The provision is meant to account for potential costs, such as employee severance payments and other related expenses. The Volvo Group anticipates the restructuring to be finished by the end of 2021.

“The Book of Mother” by Violaine Huisman – The Mendocino Beacon