Volvo cutting jobs, production

| 12/17/2008

The world’s second-largest truck maker is cutting back on production and jobs. Volvo announced Tuesday, Dec. 16, that it’s stopping heavy truck production in Europe for up to 25 days in the first quarter of 2009 because of the recession.

Bloomberg reported that Volvo’s sales fell 21 percent in November and that canceled orders outnumbered new orders by 1,800 trucks. The company is also in the process of cutting more than 2,000 jobs.

According to Bloomberg, truck manufacturers worldwide have seen orders fall dramatically, largely because potential buyers can’t get financing.

In related news, engine-maker Cummins says it’s laying off 500 workers and has downscaled its sales projections for this year.