Stockholm- The Swedish carmaker Volvo is to shed a further 900 jobs in its Swedish home base, the company said Friday, citing weaker sales in Europe and the United States.

The economic downturn in Europe and the US had impacted "the premium car market" where sales were "deteriorating even more rapidly than in the volume market," Volvo Cars said in a statement.

The company, which is owned by US carmaker Ford, has earlier announced plans to lay off 2,000 employees of its 25,000-strong workforce - including 1,200 in Gothenburg on Sweden's west coast and Olofstrom in the south of Sweden.

As of October, Volvo said it would cancel the night shift at its Torslanda plant in Gothenburg. Earlier it had planned the move from late December.

The measure would mean a 5 per cent cut in production or 20,000 vehicles. The carmaker was estimated to sell 400,000 cars this year compared to 457,000 cars last year.

Earlier this month Volvo reported that chief executive Fredrik Arp was leaving the company and was to be succeeded by Stephen Odell as of October 1. Ford bought the Swedish brand in 1999. (dpa)