Volvo to shed its Polish bus plant in cost-cutting drive

Volvo Group will slash 1,600 jobs across its European bus-manufacturing unit as part of cost-cutting measures.

The Swedish company plans to sell its bus-bodybuilding factory in Poland, where the majority of the jobs are. Selling the Wroclaw plant will trigger a restructuring provision of 1.3bn Swedish crowns (£102m) that will impact Volvo’s operating income in this year’s first quarter, it said.

The move is as part of restructuring designed to restore Volvo Buses to profitability. It will now focus on chassis production and work with external companies to produce the rest. The layoffs still leave Volvo with more than 2,100 employees in Poland working across its trucks, construction and group support divisions.