Volvo Cars to double 2008 cost cutting plan, to save $660 mn
Ford-owned Volvo Cars aims to halve its total costs for 2008 with planned cuts of up to 4 billion kronor (euro430 million; US$660 million), meida reported on Saturday.
By Agencies |
STOCKHOLM/SWEDEN: Ford-owned Volvo Cars aims to halve its total costs for 2008 with planned cuts of up to 4 billion kronor (euro430 million; US$660 million), meida reported on Saturday.
Citing the carmaker's President and Chief Executive Fredrik Arp, Swedish business daily Dagens Industri said the company plans to significantly step up its current savings package due to a weaker US dollar, higher raw material prices and lower demand in both the US and Europe.
Most of the savings will come from the company's suppliers, external consultants and premises, he said.
``We will terminate contracts. By, for example, leaving or selling premises we don't need,'' Arp was quoted as saying, adding that it was not yet clear what effects the cost cuts would have on the company's staff.
``We don't yet know exactly what the redundancy will come to as we adjust to this new (cost) suit,'' he told the media.
Volvo Cars spokeswoman Maria Bohlin declined to confirm the amount of the planned savings, but noted that ``we need to reduce our total costs more (this year) than a normal year.''
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``But how much that will come to, or what that will mean, will be known in a few weeks.'' Download
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