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Revised production plans result in decision to pull ahead closure of third shift in Torslanda

Car industry suffers from a difficult market situation:

In light of a significant downturn in industry volumes, Volvo Car Corporation has decided that in order to balance production volumes it is necessary to pull ahead the closure of the night shift at its Torslanda Plant from late December to early October 2008.


The rapid decline of market conditions in Europe over the past months, in combination with the difficult US market and a slow down of growth in emerging markets, has resulted in a significant impact on the car industry as a whole. The effect on the premium car market has been substantial, with sales volumes deteriorating even more rapidly than in the volume market.


We are following the development in the market place and plan production volumes accordingly. As markets continue to deteriorate, Volvo Cars needs to balance production volumes in order to avoid a large build-up in vehicle stocks. Early estimations indicate a further reduction of around 900 blue collar employees will be necessary in 2009.


For further questions please contact:

Senior Vice President Public Affairs Olle Axelson +46 31- 59 26 00

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