Heavy truck suspension and braking specialist Haldex said it had extended short-term layoffs for most employees in Landskrona, Sweden, first introduced on 30 March and affecting 250 workers.
The COVID-19 pandemic reduced demand and the short-term working plan has now been extended to last at least until the end of May.
An agreement with the unions gives room for further extensions as long as COVID-19 affects the business.
Haldex will regularly review the situation in coming months.
“Unfortunately, we must extend the short-term working plan to adjust the cost base as long as COVID-19 impacts our business.
Obviously, we want to avoid layoffs as far as possible and these measures allow us to maintain our skilled workforce ensuring a quick ramp up of working hours as the situation improves.” said CEO and president Helene Svahn in a statement.