STOCKHOLM Oct 15 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)