Volvo to Hire 200 Workers in Preparation for Higher 2011 Demand

Opinions on the way the automotive industry is going to perform next year are still divided, but some companies are already making the final adjustments to be able to face a potential higher demand in the upcoming 12 months. Volvo Cars, recently acquired by Geely Holding Group, will hire an additional 200 workers in Sweden to be able to cope with what it expects to be one of the biggest increases in demand in the last couple of years.

The new employees will join those working at the company's plant in Gothenburg and will attempt to raise production from 48 cars per hour to a total of 52 units in the same timeframe. Workforce will total 3,400 workers after the new addition, according to a report by Bloomberg.

“We want to be prepared as we expect higher demand next year,” Volvo spokesman Per-Ake Froberg said in a statement.

The Swedish group earlier this month secured a loan from the European Investment Bank (EIB) to develop and manufacture new engine generations and other technology at its locations in Gothenburg and Skovde.

"This is highly welcome news which will secure jobs and investments in Sweden as well as strengthen the future competitiveness of Volvo Car Corporation," said Stefan Jacoby, Volvo CEO.

"This loan will give us enhanced financial stability and flexibility, allowing us to deliver on our ambitious growth plan. I would like to thank the Swedish National Debt Office for the constructive spirit in which the negotiations were undertaken, as well as the Swedish government for its support," added Hans Oscarsson, CFO of Volvo Car Corporation.