Stockholm - Volvo, the Swedish carmaker owned by Ford, is to shed a further 3,400 jobs mainly in its home base, the company said Wednesday, citing weaker sales in Europe and the United States.

The new cuts would affect some 2,000 blue-collar workers and 700 white-collar employees in Sweden, the company, which is owned by US carmaker Ford, said.

Combined with earlier announced job cuts, Volvo was to cut 6,000 employees, including 2,900 blue-collar workers, from its 25,000-strong workforce.

While job cuts will mostly impact operations in the Swedish west coast city of Gothenburg, an additional 600 Volvo employees outside of Sweden are to be made redundant.

In addition, contracts with some 700 consultants would be cancelled, the group said Wednesday.

"These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation - a company with more focused operations and structure," Volvo Car Chief Executive Stephen Odell said.

Odell added that "the downturn in the global car industry is more drastic than expected."

The carmaker earlier said it would reduce production by reducing night shifts. The carmaker is expected to sell 400,000 cars this year, compared to 457,000 in 2007.

Ford bought the Swedish brand in 1999. (dpa)