RESHORING CASE

Volvo

Company details
Code: 
Volvo
Company name: 
Volvo
Group name: 
Volvo Group
Company country: 
Sweden
Number of employees: 
88464
Sector: 
C - Manufacturing
Sector detail: 
C29 - Manufacture of motor vehicles, trailers and semi-trailers
Reshoring details
Reshoring announcement date: 
19/07/2016
Starting implementation date: 
July, 2016
End of Implementation : 
December, 2016
Reshored to: 
Sweden
Location of affected unit(s): 
Gothenburg
Location code: 
SE094
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
450
Reasons for reshoring: 
Firm's global reorganization
Proximity to customers
Unattractiveness of the offshore market
Case narrative: 

Volvo is a well known Swedish producer of vehicles including trucks and cars.

CEO Martin Lundstedt stated that while demand for trucks is significantly increasing in Europe, there is an excess of production in North America. According to the news, in the second quarter of 2016, Volvo delivered 52,670 trucks, compared with 55,613 in Q2 2015. Order intake dropped to 45,422 trucks from 49,551 in Q2 2015. Thus, Volvo plans to employ further 400-500 workers at its factory in Gothenburg, Sweden, reducing at the same time the number of employees in North America by around 300 persons.

Sources: 

Dagens Nyheter, 19/07/2016

Offshoring details
Offshoring location: 
United States