Automotive News - September 8, 2008 - (Page 17) SEPTEMBER 8, 2008 • 17 ‘People just want Ford to go’ Workers in Volvo’s hometown hope brand will be sold John Revill jrevill@craincom.de Rising and falling Since Volvo was acquired by Ford in 1999, the brand’s U.S. lightvehicle sales climbed to a peak in 2004, then have fallen. 2007: 106,213 2006: 115,807 2005: 123,587 2004: 139,067 2003: 134,586 2002: 110,670 2001: 125,710 2000: 123,178 GOTHENBURG, Sweden — Across the road from Volvo Cars’ Torslanda factory is a shopping center called Volvo City. Like the Swedish automaker that is one of this country’s most famous brands, the battered sign on the center has seen better times. Sales are down and losses are mounting at Volvo, which was bought by Ford in 1999. In the first quarter, Volvo’s global sales dropped 7.2 percent to 109,167 units from 117,614 in 2007. The company swung to a pretax loss of 100 million euros ($156 million) in the first quarter of this year from a year-earlier profit of $94 million. In response, 2,000 job cuts have been announced, and rumors of an impending sale refuse to go away. Many workers in Volvo’s hometown of Gothenburg want Ford to go. They hope that move would allow another carmaker with fewer financial problems to buy Volvo and invest in the company’s future. “Ford has not been a good owner,” said Vera Coutinho, who works in bumper assembly. “I think another owner would be better.” Another worker, Simon Kidane, said the mood in the factory is depressed. “People just want Ford to go,” he said. “Ford is not making that much money, and neither is Volvo. Ford needs the money, so everyone expects Ford to sell.” Need Salespeople, Tech’s, Managers & Other Employees? The Auto Industry’s #1 Recruiting, Training & Marketing Company Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO PHOTOS BY JOHN REVILL The Volvo City shopping center near Volvo’s Torslanda factory in Sweden has seen better times. Heart of Swedish industry Volvo is important to Sweden in many ways. Anders Kallstrom, chief executive of the West of Sweden Chamber of Commerce and Industry, said Volvo provides a large number of jobs not just in the Gothenburg region but also elsewhere in the country. Besides the 17,600 workers directly employed at Volvo in Sweden, thousands of others work at suppliers or other companies that depend on Volvo. According to Volvo, every one of its employees creates about 3.5 jobs outside the company, which means about 60,000 jobs elsewhere in Sweden. But Kallstrom also cites other reasons Volvo matters. “Volvo’s values are almost Swedish values, and it is probably the most famous Swedish brand name,” he said. “People are very proud that Volvo cars are made in Gothenburg.” Kallstrom joins the chorus of Swedes who express disappointment with Ford’s ownership of Volvo. Many people thought Ford would be a good owner at first, he said, but that view has changed. “Ford has their own big problems in the U.S., and they cannot support Volvo’s development in the way we had hoped,” Kallstrom said. “Everyone thinks Ford is going to sell Volvo. They say they won’t, but people don’t believe them.” Nobody knows for sure what Ford’s intentions are, but Volvo Like the flags proudly waving at an entrance to the Torslanda factory, the people in Volvo’s hometown of Gothenburg take great pride in Volvo and are disappointed with Ford’s ownership. Says Chamber of Commerce exec Anders Kallstrom: “Ford has their own big problems in the U.S. and they cannot support Volvo’s development in the way we had hoped.” worker Coutinho said: “What is most important is that Volvo must stay in Sweden; it must stay Swedish.” Jobs are the main concern, but people also worry about the country’s future and, in particular, the future of Sweden’s strong automotive cluster. linked Volvo with France’s Renault, several Chinese carmakers and an unidentified Russian company. Most Swedes agree that Volvo must retain its Swedishness to survive. “Volvo is very much based on Swedish culture, and that would make it almost impossible to move it to China or somewhere else,” said Kallstrom of the West of Sweden Chamber. sica is an assembly line worker, said Ford’s efforts as an owner have been hampered by its own financial problems. Said the union official: “Ford has done what it could, but you need an owner in a better financial situation.” c Helpless feeling “Volvo is very important for the region — not just for the jobs but the skills and cooperation between the universities, industry and government on research and development,” said Malin Noren, head of the Automotive Sweden lobbying group. “This sharing of skills and training is unique and must be preserved.” Among the Volvo workers, there is a feeling of helplessness caused by recent job losses, which were higher than expected. Of the job cuts announced in June, 1,200 will be in Gothenburg. Many workers hope that heavytruck maker AB Volvo, which used to be one company along with the carmaker, will come to the rescue. But a lack of synergies makes such a merger unlikely. Unconfirmed rumors also have Stronger owner needed Stephan Lovgren, an automotive correspondent for the Gothenburg Post newspaper, thinks Ford will sell Volvo as soon as it finds a buyer. Lovgren said that when Ford bought Volvo, the Swedish company needed a strong owner with sufficient resources. “Volvo still needs that, and it’s not getting it from Ford,” he said. “The feeling in Gothenburg and in the company is that Volvo would be better under another owner.” But a lot will depend on the identity of a prospective owner. And that uncertainty leads to concern. “Today I am very worried about the future,” said Olle Ludvigsson, president of the IF Metall Union at Volvo. Ludvigsson, whose daughter Jes- http://www.clickhereforadvice.com http://www.clickhereforadvice.com http://www.hiousa.com http://www.hiousa.com http://powerpusher.com http://powerpusher.com
Table of Contents Feed for the Digital Edition of Automotive News - September 8, 2008 Chrysler Financial hikes dealer floorplan fees Back in business? Detroit's best bets for cash: Feds, UAW Document fee suits swamp Missouri dealers Honda's family squabble Used truck prices rebound Ford mulls Lincoln compact Toyota delays RAV4 plan Proposed flex-fuel mandate roils industry Chrysler sues consultant over sourcing Cobalt transaction prices are up $775 since April Nissan looks to Mexico for engineering aid To retain truck buyers, Nissan offers more stuff Press: Chrysler is pushing forward on electric cars Leasing falls to 4-year low GM: Currency shift stalled Astra Dealers say they can sell the Republican ticket Industry loans clash with GOP climate Grand Cherokee will get axles from new plant Makers must resist urge to backslide as gas price dips Times are tough outside the U.S., too Chevrolet does tout its small cars Let natural gas power the fuel cell A crash course in collaboration Dodge wouldn't rush the RamBox Plastics are losing cost advantage Suppliers expect to benefit from tougher CO2 rules 'People just want Ford to go' For now, Honda will skip electric vehicles Toyota, Subaru enter race to market electric vehicles China exports squeezed Study: 15% of wrecked autos got washed titles Mercedes megadealer is bullish on luxury Sheehy: 'We are not in business for nostalgia' Automakers use driving schools as marketing tools Dodge smoothes Ram's rough edges â a little Honda touts leasing while others fall back Alysha Webb Study: Nonprime car loans get longer Dealer CPA group picks leader BMW, Edmunds team up on loan site for consumers Va. Honda dealership loses protest bid Judge throws out deceptive-ads lawsuit against Toyota in Arkansas Mo. dealership's protest gets go-ahead Pa. court throws out suit against Ford, dealership Dealers Ross' interiors company pushes into China, India More than a game Nissan's Tavares: Green conference keynoter Quality group seeks to set consulting standards Personnel Dana to shift HQ by Sept. '09 Tenneco to supply Volvo XC60 BMW gets Siemens conveyors IAC to cut 280 jobs in Sweden Polytec to acquire Peguform Metaldyne to sell Italy operation Federal-Mogul to build India plant Beck, Delphi make pact TRW to supply Chinese sedan Auto profits rise in Russia Black Book expands data Hayes Lemmerz cuts losses Ford: Buyouts are a tough sell GM's party plans include production Volt An ice-cold August for auto sales Big drop in Aug. output Lights, camera . . . Volt? In case the roads get too quiet . . . The Insight rides again Lagonda brand will be back Milwaukee road trip: No old pals, but 1 new lesson Choice of Odell seen as Ford vote of confidence in Volvo Dana sort of wins an award Automotive News - September 8, 2008 Automotive News - September 8, 2008 - (Page Introducti) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 1) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 2) Automotive News - September 8, 2008 - Toyota delays RAV4 plan (Page 3) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 4) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 5) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 6) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 7) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 8) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 9) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 10) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 11) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 12) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 13) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 14) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 15) Automotive News - September 8, 2008 - Suppliers expect to benefit from tougher CO2 rules (Page 16) Automotive News - September 8, 2008 - 'People just want Ford to go' (Page 16A) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16B) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16C) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16D) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 17) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 18) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 19) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 20) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 21) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 22) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 23) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 24) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 25) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 26) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 27) Automotive News - September 8, 2008 - Automakers use driving schools as marketing tools (Page 28) Automotive News - September 8, 2008 - Dodge smoothes Ram's rough edges â a little (Page 29) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 30) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 31) Automotive News - September 8, 2008 - Judge throws out deceptive-ads lawsuit against Toyota in Arkansas (Page 32) Automotive News - September 8, 2008 - Pa. court throws out suit against Ford, dealership (Page 33) Automotive News - September 8, 2008 - Dealers (Page 34) Automotive News - September 8, 2008 - More than a game (Page 35) Automotive News - September 8, 2008 - Personnel (Page 36) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 37) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 38) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 39) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 40) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 41) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 42) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 43) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 44) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 45) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 46) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 47) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 48) Automotive News - September 8, 2008 - Big drop in Aug. output (Page 49) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 50) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 51) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 52)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.