STOCKHOLM Oct 3 Volvo AB expects low growth in bus demand in Europe and aims to move its bus production to Poland and shut its Swedish plant, the company said on Wednesday.
It also said in a statement it would take a charge of 100 million crowns ($15.14 million) in the fourth quarter if it carried out its plan to concentrate its European production of complete buses in Wroclaw, Poland and stop production at its plant in Saffle, Sweden.
"Demand for new buses in Europe has dropped steadily over the past few years, paralleled by considerable pressure on prices, particularly in the Nordic markets," said Hakan Karlsson, the president of Volvo Bus Corporation.
"The company assesses that volume growth in Europe will remain low in the coming years and that price pressure will continue," Volvo added.
($1 = 6.6036 Swedish crowns) (Reporting by Patrick Lannin)