Volvo Ghent

Amidst economic turmoil, the less-than-stellar news continues to develop in Europe. In the context of automobile industry, Belgium appears to be the latest region to feel the effects of the crisis, as Volvo has announced it will reduce production in its Ghent facility in 2013.

The Volvo assembly plant currently produces the S60, XC60, C30 and V40 models. It employs roughly 5,200 people. This news comes on the heels of Ford announcing the shuttering of its own Belgian facility, located in Genk.

According to Lars Wrebo, Senior Vice President Manufacturing at Volvo, "We have had a very positive trend during a number of years, with 2011 as a record year." He continued, "Now we see customer demand declining and we need to rebalance our production output. In today's market situation, flexibility is essential in the automotive industry."

In order to address the declining demand, production volume will be reduced from the current rate of 59 cars per hour to 54 cars. The result of this move on the workforce is the non-renewal of approximately 300 agency worker contracts. Check out the press release below to see all the details on this announcement.
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Volvo Car Corporation reduces production volume in Ghent

Volvo Car Corporation will lower its production volume in the factory in Ghent, Belgium as of 2013.

This will be done through reducing the line speed from 59 cars per hour to 54. As a consequence of this, approximately 300 agency workers will not get their contracts renewed when these expire by the end of this year.

"We have had a very positive trend during a number of years, with 2011 as a record year. Now we see customer demand declining and we need to rebalance our production output. In today´s market situation, flexibility is essential in the automotive industry," says Lars Wrebo, Senior Vice President Manufacturing at Volvo Car Corporation.

In Ghent the S60, XC60, C30 and V40 models are being produced. In November, the serial production of the all-new V40 Cross Country will start.

In total Volvo Car Corporation has around 5,200 employees in Ghent.