Volvo Group to give notice to 1,600 employees in Sweden

Volvo logoStockholm - Heavy-vehicle maker Volvo Trucks said Tuesday it was to give notice to 1,020 employees in Sweden, citing "very weak demand" in Europe and no sign of a recovery.

Volvo's Powertrain division, which makes engines and gearboxes used in its heavy vehicles as well as construction machinery, was also to cut some 600 jobs, the Volvo Group said.

Both Volvo Trucks and the Powertrain division are part of the Volvo Group that does not include Volvo Cars, the Swedish carmaker owned by US giant Ford.

Most of the cuts - some 670 jobs - were to affect Volvo Trucks' plant in Umea, northern Sweden.

At the end of last year, Gothenburg-based Volvo said it would introduce stop days in production after November truck deliveries slumped 21 per cent year-on-year.

Volvo has recently announced several job cuts. (dpa)

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