Volvo recently announced its plans to invest $780 million in the following two years, part of its restructuring plan.
“The programme encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system,” the company wrote in a statement.
The automaker did not say how many jobs will be affected by the restructuring plan. The world’s second biggest truck manufacturer said that the restructuring strategy will only affect its lorry segment. Volvo said that most part of the $780 million investment “is expected to impact operating income during 2014″, but create annual savings of $624 million “with full effect achieved by the end of 2015″.
For 2012 and the first quarter of 2013 Volvo reported lower than expected results and the company’s operating profit during the second quarter fell 58% to around $600 million due to the economic slowdown in China and the downturn in Europe which kept companies away from vehicle purchases.
At the beginning of the year Volvo announced its partnership with Chinese automaker Dongfeng, aimed at making the Swedish lorry manufacturer a tougher rival for Daimler in the race for the world’s top place.
Earlier this month, Geely and Volvo opened a new research center in Gothenburg, with the immediate task of developing a new modular architecture and components for the next generation of C-segment cars for both automakers.