GOTHENBURG, Sweden — Sagging truck sales in Europe have forced Volvo Group to announce layoffs at truck plants in Sweden and Belgium.
About 1,400 workers will be laid off at three Volvo truck plants, the Associated Press reports.
The company said it would institute cost-reducing measures to cope with lower sales and the higher costs of raw materials, according to the Associated Press report.
“The European truck demand is now slowing,” Volvo said. “The negative market development has been accentuated by the recent events in the financial markets resulting in financial uncertainty and credit restrictions.”
Volvo Group also said some customers have been unable to replace their trucks because of their inability to secure credit as a result of the current global credit crisis.
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