Volvo production halted for a week
Volvo Cars has decided to halt production at its main Swedish plant for one week as demand in the automotive market continues to slip in recession-hit Europe.
The Gothenburg-based car-maker, which is owned by China's Geely Holding Group, said the production halt will affect some 3,300 employees and will last from October 29 to November 2. The workers will be compensated through a variation of paid leave.
Volvo Cars' chief finance officer and acting president Jan Gurander said: "Europe is the main market for Volvo Car Corporation and the continued recession is naturally affecting the demand."
On October 1, the company decided to slow the production pace of the Torslanda plant, from 57 cars an hour to 50 cars.
Volvo Cars has a global workforce of around 22,000.