EU:Ford cuts workforce at Volvo Cars 5.3%
Ford cuts workforce at Volvo Cars 5.3%
BY CHAD THOMAS
Ford Motor Co. is eliminating 5.3% of the workforce at its Volvo Cars division to reduce spending and boost earnings.
The automaker will eliminate 1,470 positions, primarily in Sweden and Belgium, out of a total workforce of 27,500 people, Gothenburg, Sweden-based Volvo Cars said Monday.
"We have to reduce the number of employees we have in order to be more effective in the future," Christer Gustafsson, a Volvo spokesman, said in an interview. "We are reviewing all cost-driving areas within the company."
The cuts at Volvo come on top of a worldwide reduction Ford announced Oct. 20 of 10,000 positions by year-end through attrition and eliminating jobs. The Volvo reductions are not part of that plan, Gustafsson said.
Sales by the Ford brand in Europe fell 3.5% in the first nine months of the year to 998,436 vehicles. Including the company's Volvo, Jaguar, Land Rover and Aston Martin brands, sales fell 3.3% to 1.29 million vehicles.
Worldwide sales of Volvo-brand vehicles fell 1.5% to 373,798 units in the 10 months ended Oct. 31, Gustafsson said. In Europe, the company's sales fell 0.9% to 205,392 vehicles, reports the European Automobile Manufacturers Association.
Ford doesn't provide details on earnings or revenue for Volvo. The Premier Automotive Group, Ford's luxury car division, reported a pretax loss of $108 million for the third quarter.
Volvo will eliminate 1,020 jobs in Sweden, 720 of which are permanent positions within the company and 300 are temporary consulting and services jobs, the automaker said. The remaining 450 job cuts will come at Volvo's assembly plant in Belgium.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....