Volvo job cuts add to sale talk

Volvo Cars has said that it is sacking about 1,200 of its employees in Sweden, adding to speculation that it is looking to sell off the business.

A further 300 overseas jobs will be axed by the Ford-owned firm, with contracts for about 500 consultants also being cancelled.

Ford Motor has in the past denied that it was looking to get rid of Volvo.

It is the only remaining part of its Premier Automotive Group after the sale of Land Rover, Jaguar and Aston Martin.

Ford said that Volvo job cuts were part of a 4bn kronor ($662m; £331m) cost-cutting drive.

Staff in Gothenburg and Olofstrom in the west and southern parts of Sweden will be most heavily affected.

Turn around

Earlier this month, Ford completed the sale of its Jaguar and Land Rover businesses to Indian conglomerate Tata in a deal valued at £1.7bn.

And it sold its Aston Martin marque to a UK-led investment consortium last year.

Ford has been forced to sell the companies in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.

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