STOCKHOLM, Sweden — The Associated Press is reporting that Volvo AB will lay off 1,000 workers globally, including 100 at its Hagerstown, Md. powertrain plant.
“When you see such an extreme slowdown in the financial markets our customers get insecure and stop buying trucks. Of course that also affects Volvo Powertrain since they make the engines for those trucks,” Marten Wikfors, a Volvo spokesperson told the Associated Press. “There is still a lot of uncertainty in the market and we see no light at the end of the tunnel.”
Volvo has been hit hard on a global scale by the credit crisis. In the third quarter, Volvo AB had a net order intake of just 115 trucks for all of Europe. Originally, about 20,000 orders had been placed for the quarter, but after the credit crunch made it difficult for customers to obtain the funds needed for their purchases, nearly all the orders were wiped from the system.
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