Volvo Buses has decided to close its factory in the south-western city of Wroclaw, in the first quarter of 2024, the company said in a press release.
The Wroclaw plant, which opened in 1996, manufactures city and inter-city buses as well as luxury coaches.
The company announced on Thursday that it would apply a new business model in Europe that has met with success on several other markets.
Volvo will focus its production on bus chassis while external bodybuilding firms will help complete a range of vehicles.
“Consequently, Volvo Buses has decided to close its bodybuilding factory in Wroclaw, Poland, in the first quarter of 2024,” the company said, adding that it had signed a letter of intent according to which the Volvo Buses’ premises in Wroclaw will be divested to Vargas Holding.
“Our business in Europe has been generating losses for years. With this business model, that we already today apply successfully in many markets, we will improve profitability and secure our long-term competitiveness,” Anna Westerberg, president of Volvo Buses, was quoted as saying.
The decision to end the production of complete buses and coaches will affect about 1,600 jobs at Volvo Buses, with around 1,500 of them located in Wroclaw. The Volvo Group employs around 3,600 people in Poland.
Anna Westerberg was also quoted as saying: “Volvo Buses will do the utmost to support our loyal employees, many of whom have been employed for numerous years.”
“We will work together with Vargas Holding, local authorities and other parties to support people in finding new employment opportunities,” she added.