Lorry-maker Volvo announces $780m restructuring

Sweden's Volvo Group, the world's second biggest lorry manufacturer, announced Tuesday a 5 billion kronor (580 million euros, $780 million) restructuring plan over two years. "The programme encompasses both reduction of white collar employees and consultants and efficiency enhancements in the global industrial system," the company wrote in a statement, without indicating the number of jobs affected. The Volvo Group, which also makes buses, construction equipment and engines, indicated that the restructuring would mainly concern its lorry business. The company added that most of the 5 billion kronor in restructuring charges "are expected to impact operating income during 2014", but create savings in the region of 4 billion kronor (463 million euros, $624 million) annually "with full effect achieved by the end of 2015". Volvo has reported disappointing results during the last year and a net loss in the first quarter of 2013. In January the group announced an alliance with Chinese manufacturer Dongfeng aimed at challenging German lorry maker Daimler for the world's top place. The Volvo Group employs 112,000 worldwide, including 16,000 consultants and temporary workers.