Scania reduces the rate of production, share fell in StockholmMonday, 10 October 2011
The vehicle manufacturer, Scania is lowering from the November the rate of production at its factories in Europe.
The background is a slowdown in demand in several markets, the company said in a statement.
"The adjustments will be addressed within the framework of the flexibility agreement between the company and the unions," writes Scania.
AdvertisementAccording to Scania, the financial problems in Europe and the U.S. are being identified as a factor that is beginning to affect the economy of their customers who make them think twice in investing in their products.
"It's about a slowdown in Europe, but also a lower rate of new orders from the Middle East," says Martin Lundstedt, head of Scania's sales and marketing in the press release.
Compared to the end of the third quarter, the rate of production of vehicles at the global level can be reduced by 10-15 percent.
Scania's shares fell after the announcement by 4.0 percent on the Stockholm Stock Exchange. The competitor AB Volvo was also drawn 3.6 percent on anticipation that it too will go the similar way.
By Scancomark.se Team
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