Bail-Out for Troubled Volvo
As car sales drop because of the international crisis, Sweden’s Västra Götaland regional government is planning to offer aid to help the Volvo auto company.
Volvo Cars is owned by Ford, which has suggested plans to reduce production in the west coast city of Gothenburg. The proposal to make around 30 million dollars available to Volvo comes after the Swedish government on Thursday rejected a bail-out for the Swedish auto industry.
Volvo Car’s new CEO, Stephen Odell, took over on Wednesday. He told Swedish Television News that he can’t exclude lay-offs, which he intends to make public by the end of the month.
Last year Volvo Cars set a record for sales, but this year sales are down around 12 percent.