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)