Volvo Cars to cut 1,200 jobs

STOCKHOLM, Sweden, June 25 (UPI) -- Volvo Cars said Wednesday it would cut 1,200 jobs, including the entire third shift of a car plant in Gothenburg, Sweden.

The company also said it cut 300 overseas white-color jobs and terminated a contract with 500 consultants, the Swedish news service Tidningarnas Telegrambyra reported.

News of the job losses halted production at the Torslanda plant in Gothenburg for six minutes, the news service said.

"People are worried that we are next. This is anything but a normal situation for us at Volvo Cars." said union leader Mikael Sallstrom.

Volvo Chief Executive Officer Fredrick Arp said in a statement the company needed "to meet worsening market conditions, primarily in the American market."

The job cuts were a "difficult, but necessary, measure to reach a better financial position," Arp said.

Volvo is trying to trim operating costs by $661 million, the Swedish news service said.