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Volvo Cars to cut production in Sweden

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14:30 CET+01:00
A drop in demand has moved Volvo Cars to reduce production at its main plant in Sweden in January and February, the company said on Friday.

"There will be a one-week stop in February and then reduced production in January and also in February" at the Torslanda plant in the southwestern city of Gothenburg, Volvo Car spokeswoman Maria Bohlin told AFP.

She did not disclose how much production would be reduced. According to regional daily Göteborgs-Posten, 5,000 cars a month would be cut.

"There is a tough situation in the car industry, as everyone knows, and we don't see any turnaround in the order book," Bohlin said.

In 2007, the Torslanda plant, which assembles 90 percent of Volvo cars produced in Sweden, made more than 193,000 in all or 16,000 per month.

Volvo Car Corporation was sold by Volvo Group to struggling US auto giant Ford in 1999.

It employs 17,000 people in Sweden and a total of 24,400 worldwide.

The company last year announced 4,616 job cuts, of which 2,721 were in Sweden. It has been hit hard by declining sales, as interest for its big, costly and gas-guzzling models dwindles.

Cash-strapped Ford announced in December it was considering selling the unit, its last foreign premium marque.

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