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Carmakers' European cut backs

Volvo is among several carmakers to cut workers’ shifts as the credit crunch bites across Europe, according to the Financial Times.

The firm, which is owned by Ford Motor, is reported to have announced 4,000 job cuts, bringing its total planed reduction in staff to 6,000.

Most of the roles will be at Volvo’s plant near Gothenburg, where large vehicles are made and whose sales have been hit hardest.

The FT says jobs will also go at Volvo’s plant in Ghent, Belgium.

Other manufacturers such as Renault, PSA Peugeot Citreon, Daimler, Volkswagen, BMW and Ford have also temporarily closed plants and laid off staff according to the FT.

Many of the first workers to be sent home by Volvo, Peugeot and Ford have been temporary employees.

Meanwhile Rolls Royce is bucking the trend by hiring staff.

The prestige marquee recruited 200 people this year with another 200 due to be employed in 2009.

Rolls Royce is among a handful of luxury brands such as Ferrari and Lamborghini who are seeing sales rise.

Work on made-to-order vehicles is thought to have been helping cushion the marques through the current financial difficulties.

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