Göteborg, Sweden – Volvo Car Corporation has reported that it has completed negotiations with its union representatives, and that a total of 4,616 jobs will be eliminated, including 2,721 employees in Sweden, 680 employees abroad, and 1,215 contracts with consultants that have been terminated.

All employees have or will be informed during the coming week, with the majority leaving the company by December 31, 2008. They will have full salary during the notice period. Volvo said that during the fall, approximately 1,000 people were moved into new jobs that became available in connection with reorganization and termination of contracts with consultants.

In parallel with the reorganization, Volvo said that it has carried out an efficiency program throughout the company, with savings found in areas such as contract renegotiations, reduced purchased savings, savings in IT, telephony and travel, and new routines in the procurement process. Further savings will be achieved by co-locating certain departments and units during 2009.

“Today is of course a very sad day at Volvo, but I feel satisfied with the fact that our cost reduction program has been successful and it has enabled us to stay with a lower number of redundancies,” said Stephen Odell, president and CEO of Volvo Car Corporation.

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