Volvo subcontractor in Ghent may close down in 2016

Volvo subcontractor in Ghent may close down in 2016

SAS Automotive will close down on 31 October and not in mid-2019 as expected. The company is one of five suppliers to Volvo cars factory in Ghent. The announcement was made on Monday (2 May) at an extraordinary works council, says the union ACV-CSC Metea. Following the announcement, the personnel decided to stop to work.

SAS Automotive produces dashboards and employs 210 people. The company said that it has put an end to the contract with Volvo, something which is contractually possible with a notice of two months. The Swedish manufacturer can request an extension of the contract for four months.

"We will not let this happen. A clear answer should be given," said Marc Staelens, regional secretary of FGTB Metal. "They should not imagine that we’ll continue nicely producing dashboards for four months without any certainty."

 "Unless something happens, the work will end on October 31, 2016," says Dany Clevers of CSC Metea. According to him, the company's strategy is to put pressure on Volvo to survive financially.

Volvo Car Corporation has not yet responded to the halt in the production of dashboards. The car corporation, which started to produce its first cars in Sweden in 1927, is owned by the Chinese Zhejiang Geely Holding Group.

The Brussels Times (Source: Belga)

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