The reason is that the business model is changing, so that the bodies of the buses are also built by external parties. So does Volvo in other areas. The factory is to be closed in 2024.
“Our operations in Europe have not been profitable for several years. With this business model, which we already apply successfully in many markets today, we will improve profitability and secure our long-term competitiveness”, writes Anna Westerberg, CEO of Volvo Buses in a press release.
Volvo expects restructuring costs of SEK 1.3 billion that will affect the operating profit for the first quarter of this year.