World number two truck maker Volvo said on Tuesday it was scaling back production and cutting about 1,400 jobs due to weaker demand in Europe, its biggest market. Volvo, which makes trucks under the Renault, Mack, Nissan Diesel and Eicher brands as well as its own name, said its Volvo Trucks arm would begin negotiations with unions regarding the staff cuts at plants in Belgium and Sweden.A savings programme was also being implented to adjust to lower sales and increasing raw materials costs, Volvo said."The European truck demand is now slowing," the company said in a statement. "The negative market development has been accentuated by the recent events in the financial markets resulting in financial uncertainty and credit restrictions."
