Volvo stalls production at Swedish plant

Week-long work stoppage blamed on weak European auto market.

October 15, 2012   by The Canadian Press

STOCKHOLM, Sweden—Volvo Cars has temporarily halted production at its main Swedish plant for one week as demand in the automotive market continues to slip in recession-hit Europe.

The Goteborg-based carmaker says the production halt will affect some 3,300 employees and will last from Oct. 29 to Nov. 2. The workers will be compensated through a variation of paid leaves.

“Europe is the main market for Volvo Car Corp. and the continued recession is naturally affecting the demand,” said Jan Gurander, Volvo Car’s CFO.

On Oct. 1, the company production pace at its Torslanda plant, from 57 cars an hour to 50 cars.


Volvo Cars has a global workforce of around 22,000.

©The Canadian Press

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