Scania stopping production for one month

According to a report in AFP (Agence France-Presse), Swedish truckmaker Scania will stop European production for nearly one month, from December 22 to January 16, due to a slowdown in demand

According to a report in AFP (Agence France-Presse), Swedish truckmaker Scania will stop European production for nearly one month, from December 22 to January 16, due to a slowdown in demand.

Scania spokesman Hans-Aake Danielsson told AFP that the company would also halt bus production for three weeks beginning on December 22.

AFP said that Scania has seen its number of truck orders drop, noting that although Scania posted a net profit of 1.81 billion kronor ($227 million) in the third quarter—up 3.6% from the same time period in 2007--heavy truck orders dropped 41%, falling by 69% in Western Europe.

"Due to uncertainty about future business conditions as well as liquidity shortages, customers in Europe have become increasingly cautious about placing new orders," CEO Leif Oestling said when the company relesased its third quarter earnings.

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