
2,000 Swedish jobs will be lost when Volvo Cars presents a new savings package. Unionen chairman Jörgen Olsson calls it frustrating and extremely difficult.
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Volvo Cars has announced a new austerity package after three weeks of hiring freezes, profit warnings and falling sales in China.
Tree House is the name of the building that very recently became Volvo Cars' headquarters, a couple of hundred meters up the hill from the old part of Torslanda.
The creation in glass and light wood is integrated with PG Gyllenhammar's old "Ornnäste" with a view of Gothenburg.
Through the doors this Friday morning, technicians and officials come in a stream - many among the union's 5,300 members.
A grim message from the Union and its chairman for eleven years, Jörgen Olsson, awaited in their mailbox.
2,500 jobs will be lost in a company with a total of around 40,000 employees. In Sweden, where Volvo Cars is the largest private employer, it is about 2,000 – most in Gothenburg, but also in Stockholm, Lund, Skövde and Floby.
Jörgen Olsson is sober.
- It will be the fourth savings package in six years. It's frustrating and a lot of work, the company and the whole organization don't feel good about it, of course, he says while the phone rings in unison.
Olsson recalls the package that was added a year and a half ago. At the time, the announcement was for 3,000 jobs, globally. 1,200 concerned employed civil servants in Sweden, plus around a thousand consultants.
- Then the management said that they took in a little to avoid having to take a new package soon. But now we are here again, he says.
At the same time, it was in the air after the news three weeks ago about the hiring freeze and profit warning and the decision to close the office in Stockholm from March 1 next year. Around 450 people work there today.
The fact that the market also more or less crashed in China has also filled the media recently.
- Then the members began to understand. But perhaps still not that it would be of this magnitude, says Jörgen Olsson.
Most people seem to understand that cutbacks primarily apply to white-collar workers, engineers and consultants. That's why workshop club chairman Adrian Avdullahu was pretty calm on Friday about his 8,000 members.
- My view is that the savings mainly concern the white-collar side. production in the factory is running as it should, he tells DN.
In China, Volvo's turnover has decreased by around 50 percent compared to the third quarter of last year.
- We live in the European market today, says Jörgen Olsson.
In Europe's car industry in particular, the pressure is now strong from several quarters for the EU to ease the regulations and accept fossil-powered cars for a longer period of time than has been said. Three party groups in the European Parliament have joined forces to allow internal combustion engines even after 2035.
The sharp announcement from Volvo five years ago to completely stop producing fossil-powered cars from 2030 has been abandoned. Now they say "net zero in 2040".
The basic electrical strategy is extremely important to stick to, believes Jörgen Olsson, who himself previously worked with the aftermarket.
- The idea of creating some kind of peace and quiet by postponing the end of CO2 emissions, to gain time, I think is dangerous.
He points to the copy of the new model EX60 that stands in the entrance of the new headquarters, which an employee is at the same time polishing to make it shine.
- We have this fantastic car in front of us. The company has a future, we will have a brand new car next year and the new long hybrids will be out in a couple of weeks.
You don't feel that the company is backtracking on the strategy?
- No, I know you don't do that.
But now comes this bang?
- Yes, it is, and if you had known, you would have acted earlier.
When 2,000 jobs are to be lost in Sweden, Jörgen Olsson points to the consulting side. There he has thoughts.
- We have a great dependence on them today and have had for a long time. It's the accordion, so to speak. Now we have to work with skills exchange so that we get the skills needed for our employees, I mean.
Money must also be available for severance pay.
- We have negotiated that, says Olsson.
In the middle of this process, Volvo Cars is also moving towards an expected change of leadership. Håkan Samuelsson, who returned as CEO this year, will be replaced "no later than October 1 next year", as they say, by 59-year-old German Klaus Zellmer with a background in Volkswagen and Porsche.
- In the relationship with Håkan, there have been no oddities, straight lines. So now a new CEO is coming, and I hope he succeeds, I wish him the best of luck. Because we need a turnaround, says Jörgen Olsson.
- ... because there is a future for Volvo too, we must not forget that on a day like this.
He points to a recent figure that he believes will easily disappear on a day when the headlines speak of a quarterly loss of 5.6 billion and further stock market crashes.
- We have an order intake that looks bright, it was at an all-time high in week 40.
AI outlook — possibilities, not facts
Klaus Zellmer will take over as CEO no later than October 1 next year
Very likely · Within months

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