Volvo Cars to shed 1000 jobs: report
Market watch top headlines
February 21 2013, 01:54AM
STOCKHOLM, Feb 20 AFP - Volvo Cars, which is owned by Chinese car maker Geely, is to cut up to 1000 jobs by the end of the year, the company's chief executive has told Sweden's public broadcaster SVT.
"You have to adjust to reality," Haakan Samuelsson said in an interview on Wednesday.
A spokesman for the company, Per-Aake Froeberg, told Swedish radio that "by the end of the year, there will be 1000 fewer of us."
The company axed 1100 positions last year, most of whom were working in its assembly plants. By contrast, most of those affected by Wednesday's announcement would be white collar workers, SVT said.
Volvo Cars said in September it employed 22,400 people.
The troubled car maker will soon launch a 1.5 billion kronor ($A232.01 million) cost cutting drive, after sales dipped by 18 per cent in January, the Swedish broadcaster wrote on its website.
The Gothenburg-based company sold 422,000 cars in 2012, which was six per cent fewer than the year before. The European market was especially tough, dipping by 10 per cent.
Volvo Cars was acquired in 2010 by the Chinese maker Geely, but the Swedish brand has since seen its market share decline and profits dwindle.
Geely exports vehicles to more than 40 developing countries in eastern Europe, Latin America, the Middle East, Africa and Southeast Asia.