Swedish carmaker Volvo is planning to reduce 10% production from 57 units per hour to 52, at its main plant in Gothenburg in southwestern Sweden from 1 October 2012, in response to reduced demand for its cars in Europe.
The carmaker is also planning to reduce its workforce by 200 to 300 people at its Swedish plant.
The car sales in the Europe are expected to decline 7% in 2012 to 12.2 million vehicles, according to a report from European Automobile Manufacturers' Association.
Volvo has set a target of doubling its sales to 800,000 cars and sport-utility vehicles by 2020, over 449,255 vehicles delivered in 2011.
Other carmakers including Fiat, GM and Ford also join Volvo to reduce production over the European debt crisis which reduced the economic growth and demand for new vehicles in the continent.
In a move to cover their expenses, Ford, Fiat and GM are all operating their plants at 70%-80% capacity.
