* To book bulk of 5 bln SEK in restructuring costs in 2014
* Industry has struggled in protracted market slump
(Adds detail, background)
STOCKHOLM, Sept 24 Sweden's Volvo
said on Tuesday it would launch a group-wide efficiency
programme that it saw generating 4 billion crowns ($627 million)
in annual savings with full effect by the end of 2015.
Volvo, which sells trucks under the Renault, Mack and UD
Trucks brands as well as its own name, said it would book the
bulk of restructuring costs, which it saw at around 5 billion
crowns, in 2014.
"The program encompasses both reduction of white collar
employees and consultants and efficiency enhancements in the
global industrial system," Volvo said in a statement.
An upturn in demand in Europe, Volvo's biggest market, has
led to order books growing in recent months after a protracted
slump, while a U.S. recovery is on firmer ground after a rough
patch around the turn of the year as public spending was cut.
An extensive product renewal is underway at Volvo with the
group rolling out five new truck models. In August, its truck
deliveries dropped four percent year-on-year, held back by the
renewal. Shipments in Europe slipped 18 percent.
Volvo said the savings covered a large number of operations
and areas, with a majority within the truck business area, and
it would announce the actions continuously as they were
($1 = 6.3844 Swedish crowns)
(Reporting by Anna Ringstrom, Editing by Alistair Scrutton)