Volvo closing a production centres in UddevallaMonday, 03 October 2011
Volvo Car Corporation will cease production in its production facilities in Uddevalla in 2013 according to a statement from the company.
Volvo Cars operation in the Pininfarina plant in Uddevalla will be closed because it produced too few cars at the factory. All employees will be offered jobs in Gothenburg or in other places in the country.
"The low volumes in the Uddevalla plant does not justify continued production, "says Volvo Cars CEO Stefan Jacoby in the press release. Volvo will investigate when a new generation of the convertible can be done and where it will be built.
AdvertisementJacoby points out that the cars in Uddevalla have kept their high quality. But a producer of Volvo's size can not from a financial stand point justify having a factory that just builds a model in such low volumes.
Production capacity in Uddevalla is utilized only 65 percent.
"The employees in Uddevalla are very talented car builder. We therefore hope that as many as possible will choose to come with the Volvo Car Corporation, "said Stefan Jacoby.
That's about nine miles to Gothenburg from Uddevalla. Volvo also has plants in Skövde, Floby and Olofström.
Volvo plant in Uddevalla was established in 1989. It was built with support from the state, to replace the city's abandoned row (1986). The factory is owned by Volvo and Italian Pininfarina, but Volvo announced last spring that it will become the sole owner of May 2013.
Production was discontinued in 1993, but resumed a few years later. Then the factory was called Autonova, and was owned in part by the British TWR. The cooperation between Volvo and the British ceased, after a conflict, in the early 2000s.
By Scancomark.se Team
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