Volvo is bringing forward the previously announced closure of the night shift at its Torslanda plant in Sweden from late December to early October 2008 “in light of a significant downturn in industry volumes” and axing a further 900 jobs next year, it said on Friday.
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“The rapid decline of market conditions in Europe over the past months, in combination with the difficult US market and a slow down of growth in emerging markets, has resulted in a significant impact on the car industry as a whole. The effect on the premium car market has been substantial, with sales volumes deteriorating even more rapidly than in the volume market,” a statement said.
“We are following the development in the market place and plan production volumes accordingly. Early estimations indicate a further reduction of around 900 blue collar employees will be necessary in 2009.”
Last June, the struggling Ford unit – whose CEO resigned recently – said it was axing 1,400 white collar workers in Sweden and overseas, 500 consultants plus 600 blue collar workers on the third shift at the company’s Torslanda plant.
The third shift employs 700 building the V70 wagon and its XC70 four wheel drive variant, the S80 large sedan and XC90 crossover.
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