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Hundreds of jobs to go at Volvo as the supposedly buoyant motor maker begins to tank

Tuesday, 28 August 2012
Sales in key markets is not doing fine as Volvo Cars would have wanted and this is shifting the company into crisis in the Swedish auto sector. For this reason, the company workforce is being reduced by up to 300 people.

Not long ago, engineers who were laid off from Saab were seeking to gain a career in Volvocar Corporation but now even those who were recruited are not sure of keeping their jobs for long.

According to information from Swedish television, during the summer sale of Volvo Cars sales have been deteriorating. The company has not yet published any sales data for July but in several of its key markets sales have significantly fallen.

In October Volvocars cut production in its Torslanda production centre in Göteborg down by nearly 10 percent.
Even before the holiday, the company took a decision to cut production by 8,000 cars kept plants in Belgium and Sweden close longer than the scheduled holiday break .

But this is not enough. Management has decided to reduce the rate of production in the important Torslanda production centre. Till date, Gothenburg plant produces 57 cars per hour. From October 1 that will fall to 52 cars per hour.

The decision means no layoffs but 200 - 300 people hired from the agencies will not have their contracts renewed.
The new cuts does not hit hard against Volvo's factory in Ghent, Belgium, where Volvo's latest model of the V40 is now produced.

Swedish Television which has been carrying the reporting on the issue says it has tried to seek comment from Volvo's press office for comment. They got this :
"We will provide more information in connection with the publication of our half-year results on 5 September," said the company's press officer Per-Ake Froberg. "Until then, we decline to give any information about our production or sales," he add.
by Scancomark.com Team