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Sweden’s Volvo Group Trucks announced on the 30th in Gothenburg’s headquarters that it will reduce truck production in Sweden and Belgium to cope with the decline in market demand.
Volvo Trucks said it will cancel the night shift that was added to the truck factories in Sweden and Belgium two years ago to meet market demand, and cut about 1,400 employees. In addition, the company will also implement austerity spending plans. The specific figures for the reduction in production and the details of the austerity spending plan were not disclosed.
The chairman of Volvo Trucks, Staffan Tovush, said layoffs and austerity spending are not just to maintain a balance between supply and demand, but also to cope with rising raw material prices and increase production efficiency.
Volvo Trucks, headquartered in Gothenburg, Sweden’s second largest city, is currently one of the leading manufacturers of trucks in the world.
Swedish Volvo Truck Company plans to cut production