Published: 12 Oct 10 15:27 CET | Print version
Online: http://www.thelocal.se/29570/20101012/
Volvo Cars is looking to relocate about 50 employees from Sweden to China as more details emerge about Geely’s plans for the Swedish carmaker's operations in China.
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Let's cut through the BS, shall we?
"Volvo Cars is looking to relocate about 50 employees from Sweden to China"
Key word here: RELOCATE. No new jobs, just moving some of their top brass that are already employed with the company to oversee the new operations.
"Volvo also plans to hire around 200 local employees with varying skill sets."
Key word here: LOCAL employees. They're hiring Chinese workers.
Translation: Volvo is setting up shop in China where they can hire cheaper labor. Don't be fooled by the title of the article, there are NO NEW JOBS for Sweden. In fact, expect many Swedish workers to be losing their jobs to the Chinese.
In Volvo case, there is only win-win solution.More and more local workers are put on the line, it's truth.
will be theirs word on what they wanted to do as I believe Geely would want more
mainland Chinese to own more beautiful reliable Volvo cars and etc.
How are you interpreting this?
"Volvo also plans to hire around 200 local employees with varying skill sets.
"There are a lot of capable Chinese engineers. But we also want to have our own people because they have competence about Volvo," said Sällström."
The way I read it is "local" meaning local to China, since that's where the project is, thus hiring Chinese. I see the comment about "our own people" being about the 50 Swedes already working for the company that they are merely relocating, who will be overlooking the new skilled Chinese employees.
As far as what Volvo and Geely do, I agree - it is their own business. He can move Volvo to the moon for all I care. I just think the article is grossly misleading and the insinuation of new jobs for Swedes is untrue.
Then the upper management is reevaluated and shifted to other departments or out the door.
Then the dreaded "consolidation" and "redundancy" jobs are eliminated with the final coup de grâce being that manufacturing and the home office are being moved for cost savings and your plant and/or office is being shut down...permanently.
The only thing that changes is the names of the companies.
Transfer that technology and know-how!
Volvo is expanding and making the sensible move to have a local plant in the world's biggest car market. Historically, Volvo would also have been wise to have had a USA plant to avoid the previous and recent unfavourable currency exachange between the Kroner and the Dollar. (Halifax plant should have been kept?). Just like other OEMs with local plants in the USA and China, Volvo is now expanding and this is something THEY have wanted and need to do for some time. Of course there will be localled employed people as well as people from Volvo HQ overseeing things. Just like Ghent and Bron wher ethe plant workers were local and management included representation from Sweden. Volvo's will continue to be designed and engineered in Sweden. Geely is wise and knows Volvo's need to be Swedish engineered and designed. As Peter Horbury says, Volvo isnt just a look or an image, its a way of doing things. The China plant will be added to the lineup of Torslanda, Ghent and Uddevalla and the new plant will only cater for the Chinese and local market NB where Volvo currently doesnt sell much! EU plants for the EU and USA. Eventually you might see car exported from China and most likely the smallest and cheapest cars like the P20 just like many other OEMS make their cheapest cars in Eastern Europe or India because profits on small cars are low.
To ensure the new Volvo China plant matches Volvo's standards elsewhere and due to Volvo's autonomy, Volvo staff from Sweden will be running and overseeing this new venture (just like when Ghent and Born were established).
It might take a few years, but I think it's a certainty that the entire Volvo operation will eventually be in China. Regardless of what top Volvo management says. Just in case anyone doesn't know it, dishonesty is still relevant in big busness.
And as a non-Swede and non-Chinese I definitely think it is not fair for the Swedes to the other western countries to call China foul. When the Japanese economy grew they closed their economy to outside competition but exported to every other economy. The south Koreans did the same. The Swedish if you didn't realize, did the same and still continue to do the same (ever notice why every road or bridge contract goes to Skanska?). The Chinese and Indians don't see the point and it is not like they are going to loose anything to share their growth, they are simply too big and it works in their favor not to reinvent the wheel.
I often don't understand the idea of cheap labor, it is a world of free market. If someone pays you more to work less and have longer vacations than someone from the other side of the world then it simply means you are consuming an unfair share of the world's resources.
I hope the Chinese will make improvements and be able to revive the brand!