Swedish truck maker Volvo plans to cut costs after its merger with French Renault by cutting the number of suppliers.
Volvo Chief Executive Leif Johansson told the Dagens Industri that once the merger with Renault, and its U.S. subsidiary Mack, is complete, it wants to reduce the number of suppliers from 100 to 50. (The deal is contingent on receiving antitrust approval in the U.S.)
"Suppliers will account for approximately half of the costs reduction,'" Johansson said. "If Volvo/RVI/Mack have two suppliers in the same sector, we will select one and where we have three, there will be two at the most."
Johansson said the company would review its suppliers of tires, auto batteries, brakes and engine starters six to 18 months after the merger goes through.
Last week, Volvo Trucks North America announced it was cutting its engine suppliers, offering only Volvo and Cummins engines.
Volvo Chief Executive Leif Johansson told the Dagens Industri that once the merger with Renault, and its U.S. subsidiary Mack, is complete, it wants to reduce the number of suppliers from 100 to 50. (The deal is contingent on receiving antitrust approval in the U.S.)
"Suppliers will account for approximately half of the costs reduction,'" Johansson said. "If Volvo/RVI/Mack have two suppliers in the same sector, we will select one and where we have three, there will be two at the most."
Johansson said the company would review its suppliers of tires, auto batteries, brakes and engine starters six to 18 months after the merger goes through.
Last week, Volvo Trucks North America announced it was cutting its engine suppliers, offering only Volvo and Cummins engines.
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