Filed under:
Europe,
Hirings/Firings/Layoffs,
Plants/Manufacturing,
Volvo,
Earnings/Financials
Amidst economic turmoil, the less-than-stellar news continues to develop in Europe. In the context of automobile industry,
Belgium appears to be the latest region to feel the effects of the crisis, as
Volvo has announced it will reduce production in its Ghent facility in 2013.
The Volvo assembly plant currently produces the
S60,
XC60,
C30 and
V40 models. It employs roughly 5,200 people. This news comes on the heels of
Ford announcing the
shuttering of its own Belgian facility, located in Genk.
According to Lars Wrebo, Senior Vice President Manufacturing at Volvo, "We have had a very positive trend during a number of years, with 2011 as a record year." He continued, "Now we see customer demand declining and we need to rebalance our production output. In today's market situation, flexibility is essential in the automotive industry."
In order to address the declining demand, production volume will be reduced from the current rate of 59 cars per hour to 54 cars. The result of this move on the workforce is the non-renewal of approximately 300 agency worker contracts. Check out the press release
below to see all the details on this announcement.
Continue reading Volvo latest Euro carmaker to cut production, workers
Volvo latest Euro carmaker to cut production, workers originally appeared on
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Report: Volvo latest Euro carmaker to cut production, workers
