Volvo says it will temporarily stop production at its Torslanda plant in Sweden during week 44, from 29 October to 2 November as European woes continue to take their toll.
The decision to stop production means the Torslanda plant employees will be on leave with pay through a combination of using time banks and leave of absence.
“Europe is the main market for Volvo and the continued recession is naturally affecting the demand for our cars,” said Volvo CFO and acting president & CEO, Jan Gurander.
“Against this background, it is essential for us to continue to use the built-in flexibility we have within our manufacturing system.”
The temporary production stop is in addition to an earlier decision to reduce the manufacturing rate in the Torslanda plant from 57 cars to 50 cars per hour. That move came into effect on 1 October.
There are no plans for changes to the permanent work force at Torslanda.
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