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Volvo set to downsize its business in Russia

It is noted that the Volvo Group plant in Kaluga continues to be idle until further notice

MOSCOW, October 19. /TASS/. The Volvo Group is considering options to downsize its business in Russia, which would include a partial sale, a company spokesman told TASS, adding that no decision had been made yet.

Due to the impossibility of operating in Russia, the auto producer will cut its staff numbers, currently amounting to about 900 employees.

"Unfortunately, in the current situation, we do not have the ability to operate in Russia, so we have made a decision to adapt by starting to reduce our operations and headcount. We currently have about 900 employees in Russia," the spokesman said.

"The Volvo Group plant in Kaluga continues to be idle until further notice. We are committed to downsizing our business in a responsible manner. The Volvo Group is considering various options, including selling part of its business, but no decisions have been made yet," he added.

Earlier in July, it was reported that the Volvo Group (which includes Volvo Trucks, Renault Trucks, the Volvo Penta, yet Volvo passenger car production is owned by Geely) was not going to leave the Russian market, but would adjust its operations based on Russia’s changing market conditions. A company spokesman said then that Volvo was in the process of determining and detailing the conditions and the number of employees who would be affected by the adaptation changes.

Earlier, Vedomosti reported, citing a top manager of Volvo in the CIS, that the company had sent a proposal to the management in the CIS to acquire its entire business in Russia. According to him, the Swedish automotive giant plans to embark on the deal before the end of 2022 or in the first quarter of 2023, the newspaper said.