Volvo to Trim European Truck Production

September 30, 2008 8:30 AM, EDT

Volvo AB, the world’s second-largest truckmaker, will cut about 1,400 jobs at factories in Belgium and Sweden because of a slowdown in European demand, the company said Tuesday.

“The planned reductions are not only being undertaken to rebalance capacity, but also to increase efficiency in production and to compensate for the higher raw material prices that we are now experiencing,” said Staffan Jufors, president of Volvo Truck Corp., the truck-making unit.

Volvo, based in Gotherburg, Sweden, said it will now begin talks with unions regarding the job cuts. The downsizing will begin in December and continue through April.