Volvo to Cut Truck Costs in Japan, U.S. as Markets Soften
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Volvo AB will restructure operations in Japan and the U.S. as the world’s second-biggest truckmaker tries to boost margins amid softening global markets.
Volvo plans to reduce its cost base by 10 percent in Japan, the company said in a statement today. The company will stop production of UD trucks in the U.S. because demand in that segment has declined and regulatory costs have increased. Volvo said it’s overhauling its truck division to better reach a goal of boosting the total operating margin by 3 percentage points.