Volvo cuts European production
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VOLVO IS cutting almost 1,400 jobs at its European plants due to demand for new trucks falling.
The company says the move will affect 610 workers in Gothenburg and 370 employees in Lime& Sweden, as well as up to 400 temporary staff in Ghent, Belgium. It is in talks with unions regarding the cutbacks.
Volvo says the recent uncertainty in the financial markets, which has resulted in worsening credit
conditions, was a factor in its decision. It believes some customers have been holding back in replacing vehicles because they have not been able to secure loans to finance new trucks.
Mark O'Bornick, transport analyst at Analytiqa, is not surprised by the news. "Given the current uncertainty surrounding financial markets, truck buyers are thinking twice about replacing vehicles, even if they are able to achieve credit terms."