Scania had already announced a reduction in its production rates of 15% in November, in order to respond to decreasing demand in Europe. The Swedish manufacturer is to reduce production by a further 15% from January 1st, because the drop in demand is being seen not only in Europe, but in other markets such as Brazil and the Middle East. Where employment is concerned, this move means that 1,000 temporary contracts will not be renewed in Scania’s European and South American factories.