In an apparent signal of future job cuts, Scania has decided to carry out a review of the company’s production structure in its native Sweden.
The review primarily affects axles, gearboxes and components operations in Södertälje, Falun and Sibbhult, currently employing 1,800.
“Continued streamlining of production is a pre-condition for keeping jobs in Sweden,” said the truck maker’s president and CEO Leif Östling in a statement, without elaborating.
During the past five years, Scania has concentrated European production of cabs, axles and engines in Sweden, increasing the number of jobs in the country by about 1,500.
“What we are now looking at is a structural streamlining that has potential to yield substantial cost savings,” Östling added.
Scania’s assessment is that it should be possible to carry out co-ordination of production in Sweden within two to three years.
The review will be completed by the first quarter of 2006.