Volvo to lay off workers, cut back on engine and transmission production

Volvo announced today that it will be laying off some of its U.S. workforce, furloughing others and cutting back on the production of engines and transmissions as it faces a decline in sales. The Swedish automaker said it will cut transmission production by a third and engine production by 25 percent at its Hagerstown plant which employs 1,260 workers.

The move will be effective Jan. 5th. According to spokeswoman Ilse Ghysens, Volvo is discussing with the UAW on how many workers it will lay off. UAW officials did not return calls from the Associated Press and we’re guessing that’s because they are too busy dealing with the auto bailout failing to pass Senate.

The future of Volvo is uncertain as Ford plans to sell its ownership in the brand for $6 billion.

Source: Detroit Free Press