A majority of the approximately 6,500 workers at a Volvo factory in Ghent are currently unemployed, including some of the 650 white-collar workers. The production lines are being adapted to manufacture an electric model, and the shift in market demand is cited as a reason for the temporary unemployment. This decrease in production is not solely due to lower demand for electric models, as seen with other car brands experiencing a dip in sales.
Despite the challenges faced by other car manufacturers in the electric car market, Volvo is moving forward with the production of two electric models in Ghent for the European market. The sales of these models have not decreased since the beginning of the year, with Volvo experiencing unprecedented sales figures in the first months of 2024. Volvo’s strategy of early adoption and development of electric models has positioned them as one of the top producers of electric cars in Europe.
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 adjusting its production lines, leading to temporary unemployment during the Easter holidays. However, in the long term, the introduction of a new electric model, the EX30, is expected to increase employment in Ghent.
The factory is currently recruiting for technical profiles and other positions to meet the growing production demand. Temporary Volvo contracts are being extended by six months, and the factory is preparing for a ramp-up in production in the coming years. While temporary unemployment may occur later in the year to accommodate the production needs of the new model, Volvo remains committed to its electrification strategy and growth in the European electric car market.