In a major shift, Volvo is currently facing temporary unemployment for approximately 6,500 workers at its factory in Ghent. This includes some of the 650 white-collar workers. The reason behind this is due to the production lines being adapted to manufacture an electric model, as demand for traditional gasoline models has decreased.
Despite this setback, Volvo is pushing forward with plans to produce two new electric models in Ghent for the European market. Sales of these models have remained steady since the beginning of the year, with Volvo experiencing unprecedented sales figures in the first months of 2024. This success can be attributed to Volvo’s early adoption and development of electric models, positioning them as one of the top producers of electric cars in Europe.
In line with its electrification strategy, Volvo aims to achieve half of its global sales volume with electric vehicles by 2025 and plans to phase out fuel engines by 2030. To support this transition, the factory in Ghent is currently adjusting its production lines and recruiting technical profiles and other positions to meet growing demand for electric vehicles. Temporary contracts are being extended by six months, and preparations are underway for a ramp-up in production in the coming years.
While temporary unemployment may occur later in the year to accommodate production needs for a new model, Volvo remains committed to its electrification strategy and growth in the European electric car market.
