The production changeover and phase-in of redesigned cabs for Scania’s new truck range at the Oskarshamn, Sweden, production unit has now been completed but more than 200 jobs have been axed in the process.
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“This has gone smoothly,” said plant manager Stefan Palmgren. “We have achieved significant improvements, including shorter assembly times.”
Production of double cab versions is ceasing, since the manufacture of cabs for Scania’s 4-series has now ended in Europe.
Consequently, Scania is making 200 employees at the redundant. Negotiations with unions have started.
Besides the 200 made redundant, Scania is not renewing the contracts of employees who were recruited on a temporary basis for the changeover. This so-called “adjustment” will be completed during the second half of 2005, the truck maker said in a statement.
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By GlobalData“The steps we are now taking will enable us to improve productivity, which is necessary in order to strengthen our long-term competitiveness and further develop our operations in Oskarshamn,” Palmgren said.
“In the long term, a productivity improvement of 6-8% annually is required at our production units in Sweden to remain competitive,” said Scania board member Per Hallberg.
During the past five years, Scania has concentrated its European cab production at Oskarshamn and made capacity-boosting investments of about SEK1 billion, including a new environmentally adapted paintshop and increased capacity in the body shop. All capacity-increase work is now complete.
