Volvo announced it will stop production at its Torslanda plant for a week this month due to weak demand.
Volvo has been affected by slow sales the entire year and now it has decided to stop production at its Torslanda plant in western Sweden for one week this month, from October 29th to November 2nd, a traditional holiday week. On October 1st, Volvo also reduced production at its Torslanda plant to 50 cars per hour from 57.
“Europe is the main market for Volvo Car Corporation and the continued recession is naturally affecting the demand for our cars,” said CFO Jan Gurander said in a statement. “Against this background, it is essential for us to continue to use the built-in flexibility we have within our manufacturing system.”
Volvo announced it signed a letter of intent to sell the plant in Spain to MAPE for structural reasons. Part of the facility’s production capacity, which is used by the automaker to build crankshafts for its automotive medium-duty engine platform, will be relocated and adapted to a new generation of engines in 2013. The letter includes conditions of the plant sale, the lease of the building and also terms under which MAPE will continue to supply crankshafts to the Volvo Group.