Volvo Car Company, the automakers who were acquired by Geely, a Chinese automotive firm in 2010 have announced that they will be reducing their technical consultants in a phased manner in a bid to reducing costs. The company is planning major portfolio upgrades during the coming year and new carlines are to be renewed as well.
These developments will be conducted by technical consultants working with Volvo Cars on a temporary basis. Following completion of their projects, the company will be reducing 300 to 400 consultants and their contracts with the company will not be renewed. Volvo Car Corporation uses these temporary consultants to help them in operations specially in manufacturing and R&D fields. This decision was taken following the company announcement that Swedish suppliers had to reduce costs by a fifth before 2015.
Volvo sales in China have been less that favorable during the past year. The company sold 449,000 vehicles in 2011 out of which 50% were sold in Europe. The company has extensive plans for China during the coming year where they plan to increase Chinese sales fourfold to 200,000 per year from the meager 47,000 sold during 2011.