Volvo Trucks Increase Production Capacity To Meet Higher Demand

WARWICK, UNITED KINGDOM – January 26, 2010: In recent months Volvo Trucks has seen positive signs of increased demand from its customers, albeit from a very low level, but now thanks to a successful reduction in the new truck inventory, the production of new vehicles will now be increased.

“The market situation is still uncertain, but we see signs of recovery in terms of trucks,“ says Volvo Trucks President and CEO, Staffan Jufors, adding “To meet the demand, we are now expanding the capacity in some of our factories.”

The increased production means fewer lay-off days at the Gent assembly plant in Belgium and for the Swedish factories in Umeå and Tuve; it means more work on Fridays.

Umeå, which supplies many Volvo Truck factories with cabs, will re-employ staff to manage the overall production needs. The Gent factory will increase the staffing in the cab-trim to be in phase with the capacity of the final assembly. At the same time the factory in Curitiba in Brazil levels up one shift.

“Since the economy remains highly uncertain, it is at this stage a question of short-term contracts,“ says Staffan Jufors.

“It is very pleasing that we see a recovery, but we must also be well aware that the economy is very uncertain and that the volume increases are from very low levels. We are acting in a very tough competitive market situation, which means that we must continue to focus on our costs and remain aware of the uncertainty of the situation and act accordingly,” Staffan concludes.