September was a catastrophic month for U.S. auto sales, and the ripple affect is reaching as far as the shores of Sweden. In the wake of a 52% fall in U.S. vehicle sales, Volvo has announced they will be cutting 3,300 jobs. Of the 3,300 impending pink slips, 2,700 of them will be delivered within Swedish borders, including 2,230 employees at Volvo Car Corporation in Gothenburg; 410 employees at Volvo Cars Body Components in Olofström; and 60 employees at the Volvo Cars Engine Plant in Skövde/Floby.
The announcement takes the total number of job cuts made by Volvo since June 2008 to a whopping 6,000.
Obviously startled to find themselves at the helm of a rapidly sinking Drakkar, Volvo posted a respectable $3 million profit for the first half of 2007, only to finish out the fiscal year with a total profit loss of $164 million. To date, Volvo sales in Europe have fallen 11.7% in the first eight months; U.S. sales by 25.8% in the first nine months.
“These are difficult times for the car industry in general, including Volvo,” explained Volvo CEO Stephen Odell. “These actions are necessary to create a new and sustainable Volvo Car Corporation – a company with more focused operations and structure.”
[News Source: AutoNews]