Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Continuing a trend of job losses over the last five years, including 1200 job losses announced in June 2008, Swedish car manufacturer has announced a further 2700 dismissals in the three sites in Sweden. 600 employees abroad were also given notice on 8 October. The basic explanation to Volvo's problems is that they do not sell as many cars as before. The reasons for the decreased sales are many, however. Some state that it is because the owner Ford did not adjust to the environmental trend in car-building fast enough. Prices of raw materials have risen and the US dollar value has decreased, making the car market unstable. Sales in the important North American market have decreased by 51% in September. Since Volvo Cars is right now negotiating with the trade union in Sweden there is not yet a decision as to when the employment effects will start and when they will be finished. The first notices were presented on 21 June, concerning 1,200 employees. Still, there are no definite decisions as to when the employees have to go.
The Swedish authorities applied for aid from the European Globalisation Adjustment Fund (EGF) which is currently being implemented.
Eurofound (2008), Volvo Cars, Internal restructuring in Sweden, factsheet number 67250, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/67250.