Volvo, owned by Ford Motor Co., said today it may have to cut 900 more jobs in Sweden in 2009 as the global car market continues to deteriorate.
Volvo also said it will move up the cancellation of the third shift at its plant in Goteborg, western Sweden, to October, originally scheduled for December, reports the AP and the Detroit News.
About 700 employees will be affected in the shift cancellation, which is part of a bigger layoff of some 1,200 workers.
"The rapid decline of market conditions in Europe over the past months, in combination with the difficult U.S. market and a slowdown of growth in emerging markets, has resulted in a significant impact on the car industry as a whole," Volvo Cars said in a statement.
"The effect on the premium car market has been substantial, with sales volumes deteriorating even more rapidly than in the volume market."
Ford bought Volvo in 1999 and was looking for buyers of the brand last year, but now Ford says Volvo is not for sale. In the first half of 2008, Volvo reported a loss of about 1.6 billion kronor ($247 million).
Last week, the company named veteran executive Stephen Odell as new president and chief executive officer of Volvo, effective Oct. 1.
The bottom line is Volvo is not doing well in terms of sales. So if you are a loyal Volvo owner and buyer, now could be a good time to negotiate a good deal on a new Volvo vehicle.