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Volvo Construction Equipment unlikely to feel pinch of parent company

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Volvo Construction Equipment, the heavy-duty construction truck maker with a factory and other operations in Shippensburg, likely will not feel the pinch when Swedish parent Volvo Group begins operational cuts to shore up its global competitiveness.

“The exact details about the specific components of the efficiency program have not been finalized or announced yet,” said Meg Dameron, a Volvo spokeswoman. “At the time, I don’t foresee any major changes in the structure of the Volvo Construction Equipment operations here in Shippensburg.”

On Sept. 24, Volvo Group announced the efficiency program that will include cuts to white-collar employees and consultants, as well as operational improvements across a large number of areas. The program is related to Volvo’s three-year strategies started earlier in the year and expected to continue until 2015.

The changes could be focused on Volvo’s commercial truck divisions, particularly in European markets, Dameron said.

Volvo Group said the changes will cost about $783 million, most of which will affect operating income in 2014. However, the changes could save $626 million annually, according to the company.

Volvo Construction Equipment recently completed new offices at its Shippensburg facility in Franklin County. The company is building a demonstration facility on adjacent land so customers can more closely examine the road construction vehicles built there.

Jim T. Ryan

Jim T. Ryan

Jim T. Ryan covers Cumberland County, manufacturing, distribution, transportation and logistics. Have a tip or question for him? Email him at jimr@cpbj.com. Follow him on Twitter, @JimTRyanCPBJ.

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