Volvo Cars to Cut 2,000 Jobs

Weak U.S. dollar and rising material costs are to blame

Volvo, a unit of Ford, said on June 25 it planned to cut 2,000 jobs worldwide. In Sweden 1,200 jobs will be eliminated.

"As part of an extensive cost reduction program, Volvo is planning to reduce its workforce by 1,400 white collar (consultants included) and 600 blue collar members of its workforce," Volvo Cars said.

The group said a weak U.S. dollar and rising raw material costs had led to a a loss in the first quarter of the year of $151 million.

"In order to improve the business, Volvo Cars is implementing a cost reduction program which is estimated to reduce the total cost level by 4 billion Swedish kronor ($700 million)," the statement added.

Copyright Agence France-Presse, 2008

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