Industryweek 3014 Volvocars595

Volvo Cars Stops Production at Swedish Plant

Oct. 15, 2012
Decline in European automotive market prompts one-week suspension.

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.

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 Corp.'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 Corp. is a separate entity from Volvo Trucks, the maker of trucks, buses and construction machinery, since the auto company was sold in 1999.

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!