A majority of the approximately 6,500 workers are unemployed and some of the 650 white-collar workers also stay at home. The production lines are being adapted to the construction of an electric model and the “changed market demand” is also given as a reason.
The temporary unemployment is not a result of the disappointing demand for electric models that other brands are experiencing. Two weeks ago it became clear that sales of electric cars in Europe are experiencing a dip, partly because Germany has abolished a premium.
Mercedes-Benz saw sales of electric cars fall by 8 percent in the first quarter. Volkswagen also saw a decline of 3 percent. And Tesla is seeing declining sales figures for the first time since 2020 and wants to cut 14,000 jobs worldwide.
But two electric models are being built in Ghent for the European market, the XC40 (recently renamed EX40) and the C40 (recently renamed EC40). And its European sales have not decreased since the beginning of this year. “On the contrary,” says René Aerts Jr. from Volvo Car Belux. There are “unprecedented sales figures” in the first months of 2024, which have made Volvo the third largest producer of electric cars in Europe, after BMW and Tesla.
“By being one of the first car manufacturers to opt for electrification and to develop the right models, Volvo proves that its strategy was the right one,” says Aerts. Volvo wants to achieve half of its global sales volume with electric vehicles by 2025. The last fuel engine must be sold by 2030.
All 15 days style
But in the meantime, the factory has to adapt and that also led to temporary unemployment during the Easter holidays. The band has been largely silent for a total of 15 days this year.
Fewer electric vehicles will be built this year, mainly because the demand for hybrid cars, such as the XC40, remains very high. The factory is responding to this, it sounds.
In the long term, the arrival of the EX30 should anchor and even increase employment in Ghent. The factory is recruiting to further increase its production in the long term. Last year, 230,000 cars were built in Ghent. There could be even more next year, although 2025 will be a ‘ramp-up’ year.
The temporary Volvo contracts will be extended by six months. For example, many temporary workers receive a temporary Volvo contract of 6 months, on the condition that they are positively evaluated. Recruitment continues for technical profiles and other shortage professions.
Volvo Car Ghent is one of the largest industrial employers in Flanders. There will also be temporary unemployment later this year to adapt the tire to the needs of the EX30.