Swedish truckmaker Scania AB said on Tuesday that from January the company will lower the production rate by 15 percent at its units in Europe and Latin America.
Back in November the truckmaker cut back its production rate by about 15 percent at the global level, but since then demand has deteriorated further.
“The slowdown in Europe and the Middle East has continued. Meanwhile we are also seeing a lower rate of order bookings from other markets,” Scania said in a statement.
“In Brazil there is uncertainty about the market trend during the first half of 2012 in light of the transition to new Euro 5 emission legislation and the trend of global demand for agricultural products and other commodities,” it said.
The company said it will not be possible to renew the contracts of 900 of a total of 1,400 fixed term temporary employees in Europe.
The adjustment that has now been decided will mean that most of the remaining number of fixed term temporary employees in Europe will be affected, along with a majority of the fixed term temporary employees in Latin America.
Worldwide the company has 35,510 employees and operates. The German automotive company Volkswagen AG is Scania’s biggest shareholder, with a 70.94% voting stake (equity) in Scania.