Volvo’s Temporary Unemployment in Ghent: Navigating the Shift in Market Demand

Volvo’s factory in Ghent, located in Belgium, is currently facing some temporary unemployment. With around 6,500 workers employed, approximately 60% of them are currently without work. However, this decrease in employment is not due to disappointing sales of electric models seen by other brands in Europe. Instead, the shift in market demand is the reason for the temporary unemployment at Volvo’s factory.

Despite the decline in electric car sales across Europe, Volvo has seen unprecedented sales figures for its electric models in the first months of 2024. The company has become the third-largest producer of electric cars in Europe with their XC40 (recently renamed EX40) and C40 (recently renamed EC40) models still being built for the European market. In fact, Volvo’s early adoption of electrification and development of the right models have proven to be successful as they aim to achieve half of their global sales volume with electric vehicles by 2025.

The factory is currently adapting its production lines to focus more on hybrid car production due to high demand for models like the XC40. While fewer electric vehicles will be produced this year, Volvo plans to introduce the EX30 model soon which is expected to further increase employment in Ghent. The factory remains committed to adapting to market needs while ensuring the sustainability of its workforce.

To overcome this temporary setback, recruitment is ongoing for technical profiles and other shortage professions as Volvo plans to increase production in the long term. Temporary contracts are being extended by six months and the factory expects growth in production in coming years with a target of producing more cars than the previous year. While temporary unemployment may continue to be a factor in the near future, Volvo remains dedicated to maintaining a strong presence in the European market and continuing its success in