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Volvo to close Pininfarina plant

2011-10-04 08:35

GONE BUT NOT LOST: Most of the 600 staff at Uddevalla are expected to be redeployed to Volvo’s other Swedish production facilities.

Volvo has announced it will close its Uddevalla production facility in Sweden.

Stefan Jacoby, Volvo’s boss, says it’s a pure business decision. "The low volumes at Uddevalla do not justify continued production"

POOR CAPACITY

All employees will be offered employment in Gothenburg or in other Swedish units.

Jacboy admitted that although the plant had world-class production it built only 10 000 cars in 2010 and was running at 65% capacity.

Volvo started production at Uddevalla back in 2005 as a joint venture with Pininfarina, the latter being the majority shareholder.

In March 2011 the two companies agreed to terminate the joint venture, which would leave Volvo as the sole owner of the Uddevalla operation come 2013, its termination date.
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