Volvo Car Corp. Monday said it would halt production for a week from Oct. 29 at its plant in Torslanda, Sweden, in the latest response to shrinking demand from an auto maker.
“The recession in Europe is deepening and that impacts customers’ willingness to buy new cars,” said Volvo spokesman Per-Ake Froberg. “Therefore we have to continue to adjust production.”
The move is the latest sign of the impact of falling demand on the car industry. The warning from Volvo, which manufactures most of its vehicles in Europe and relies heavily on the continent for sales, could send a pessimistic signal to market participants, who are heading into earnings season with continued concern about Europe and the impact of the euro-zone crisis on consumer behavior.
Volvo is an unlisted unit of Chinese Zhejiang Geely Holding Group Co…