US Auto sales dropped almost 30% last month, and four out of the five biggest car makers in Europe had declining sales as well. Things look bad for the auto industry. But it’s a good thing, lean times strip the dead weight, allow only the best and most efficient companies to survive. The industry will come out the other side stronger.
It’s still tough though, Ford Motor’s Volvo subsidiary tripled the number of jobs it planned to cut to 6,000 positions, or 25 percent of its work force. That’s 4,000 more than the original 2,000 job cuts it announced in June. The job cuts are part of a plan to lower expenses by $560 million dollars.
“The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected,” Volvo’s chief executive officer, Stephen Odell, said in a statement.
Volvo still retains 24,300 employees.