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Aftonbladet - Sweden | Thursday, June 26, 2008

Volvo in crisis

Volvo, the Swedish car manufacturer which belongs to the American company Ford, has announced it will cut 2,000 jobs. The crisis is worse than feared, the Swedish tabloid Aftonbladet comments: "Petrol prices are forcing the automotive industry to build smaller, more economical cars. ... Volvo has concentrated the production of its larger cars in Torslanda and the rest of Sweden, which is why the factory in Hisingen is especially hard-hit. The low dollar means that cars built in Sweden are expensive in the USA. And unlike many competitors, Volvo has no production facilities on the other side of the Atlantic. ... It is also questionable whether the company's model range is sufficiently broad, given the stiff competition. ... It was clear that a crisis was coming, and the cuts were anticipated. Nevertheless the news came as a shock. This will not fail to weaken the company in the future, too."

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