Volvo Cars suspends production in factory due to European slowdown
AFPSTOCKHOLM -- Volvo Cars, part of China's Geely group, said on Monday that production at one of its main plants would be suspended for a week due to a slowdown in the European auto market.
October 16, 2012, 2:48 pm TWN
Production at Torslanda, next to the company's Gothenburg headquarters, will be temporarily halted from Oct. 29 until Nov. 2.
“The measure is taken based on a continued decline of the automotive market, primarily in Europe. Therefore a further adjustment to Volvo Car Corporation's manufacturing operation is necessary,” the company said in a statement.
On Oct. 1 Volvo reduced the production pace at Torslanda to 50 cars per hour, down from 57.
During the week-long suspension, “Torslanda plant employees will be on leave with pay through a combination of utilizing time banks and leave of absence,” it said.
Volvo Car Corporation is a separate entity from Volvo Trucks, the maker of trucks, buses and construction machinery, since the auto company was sold in 1999.