Volvo Buses is planning to discontinue its production of buses and will shift to the manufacturing of chassis instead, according to the company’s statement issued on Thursday.
“Our business in Europe has been incurring losses for years. However, with our new business model, which has already been successfully implemented in many markets, we aim to improve profitability and ensure long-term competitiveness for our company,” said Anna Westerberg, President of Volvo Buses.
Providing employment to 1,500 workers, Volvo’s bus factory in Wrocław is set to close down in the first quarter of 2024.
The only Volvo company branches that will remain in Wrocław are those providing business services, including Volvo Group Digital & IT, Volvo Group Financial Control & Accounting, and Volvo Group Real Estate.
Some of the workers to be laid off will have the chance to secure employment with a new company, as Swedish Vargas Holding, with whom Volvo has signed a letter of intent, will take over the production halls.