Scania to Restructure Its Bus Organisation

  Scania to Restructure Its Bus Organisation

Business Wire

SÖDERTÄLJE, Sweden -- March 3, 2014

Scania (STO:SCVA)(STO:SCVB) will launch an efficiency programme with the aim
of ensuring profitability in its city bus operations, which will generate
annual cost savings of SEK 70 million. Negotiations have been initiated with
trade unions in order to reduce the workforce by 250 employees, of whom about
200 are in Poland and 50 are in Sweden.

“We possess significant overcapacity in our city bus operations. We must
therefore undertake extensive restructuring measures in order to match our
industrial structure with our commercial conditions. This is the only way to
secure our long-term position as a supplier of complete city buses,” says Klas
Dahlberg, Senior Vice President and Head of Scania Buses & Coaches.

Sales of Scania’s internally developed and manufactured fully-built city bus,
the Scania Citywide, have declined since the record years 2010 and 2011, when
more than 600 units were delivered to public transport systems in Sweden, the
Netherlands and the United Kingdom, among other countries.

The structural changes will involve research and development, purchasing and
direct production of city buses as well as related administration.

Scania's production unit in Słupsk, Poland, with over 500 employees, will
initiate the process of adapting its organisation to current market
conditions. Scania initiated negotiations with local trade unions in order to
reduce staffing by about 200 people, affecting both blue collar and white
collar employees.

Owing to several years of volatile demand for fully-built city buses, Scania
has worked with various activities, in cooperation with local trade unions,
with the aim of retaining employees at the production unit in Słupsk.

“Due to intensified competition and increased price pressure, we now have to
adjust staffing to lower levels. This has not been an easy decision to take,
but unfortunately it is necessary for our long-term survival as a bus and
coach bodybuilder here in Słupsk” says Peter Björk, Head of Scania Production

At the head office in Södertälje, Sweden, changes will be made in the research
and development department, and in the purchasing department, for the Scania
Citywide. About 50 employees will be affected in Södertälje and they will all
be offered continued employment at similar departments in the main Scania

Scania is one of the world’s leading manufacturers of trucks and buses for
heavy transport applications, and of industrial and marine engines.
Service-related products account for a growing proportion of the company’s
operations, assuring Scania customers of cost-effective transport solutions
and maximum uptime Scania also offers financial services. Employing some
41,000 people, the company operates in about 100 countries. Research and
development activities are concentrated in Sweden, while production takes
place in Europe and South America, with facilities for global interchange of
both components and complete vehicles. In 2013, net sales totalled SEK 86.8
billion and net income amounted to SEK 6.2 billion. Scania press releases are
available on

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