World number-two truck maker Volvo production at its New River Valley plant in Virginia had been halted after 2,600 workers at the U.S. factory went out on strike. The two sides were in negotiations for a new contract since Jan. 8, but when the existing contract ended on Jan. 31 with no agreement reached, the union called the job action. The United Auto Workers union (UAW) had called a strike for 0500 GMT involving slightly more than 2,600 of 2,900 workers at the plant, which turns out about 100 Volvo and Mack trucks per day.
Volvo has been contending with very different conditions across its main markets. While European and Asian demand is strong, the U.S. truck market plunged last year after surge in buying in 2006 of older and cheaper trucks ahead of new tougher emission rules that began in 2007. The firm expects the North American market to begin to gradually recover this year, although at a slower pace than predicted earlier because of weakness in the U.S. economy.
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