Geely-owned Volvo to halt output for a week due poor demand
STOCKHOLM Oct 15 (Reuters) - Swedish car maker Volvo, owned by Chinese group Zhejiang Geely Holding Group Ltd, said on Monday it would halt production at its main plant for a week this month due to weak market demand.
The company, which has suffered from slowing sales this year and internal divisions, said in a statement it would stop output from October 29 to November 2 - a traditional holiday week - at its Torslanda plant in western Sweden.
"Europe is the main market for Volvo Car Corporation and the continued recession is naturally affecting the demand for our cars," chief financial officer, and acting chief executive officer, Jan Gurander said in a statement.
"Against this background, it is essential for us to continue to use the built-in flexibility we have within our manufacturing system," he added.
The production stop is in addition to an earlier decision to reduce the production pace in the Torslanda plant from 57 cars to 50 cars per hour. That change came into effect on October 1.
"There are no plans for changes to the permanent work force at the Torslanda plant," it added.
(Reporting by Patrick Lannin, editing by Simon Johnson)