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BRUSSELS -- Union leaders say Volvo will continue to build the S60 sedan in its Ghent, Belgium, plant after 2010 and will add production of a new V60 station wagon there.

The decision likely will secure the plant's future, unions say. Volvo has announced job cuts in recent months to offset financial losses and falling sales. The cuts have made Ghent's 4,600 workers nervous about their future.

"Finally some good news for the workforce: The new cars will boost production, which this year will probably be only 185,000 vehicles," said Rudi Schatteman, from the Belgian metalworkers union ABVV-Metaal.

Volvo did not confirm that the next-generation S60 and the new V60 – both due in 2010 – will be built in Ghent. Volvo spokesman Mark De Mey: "At this stage, I cannot comment. I cannot deny it or confirm it."

According to factory sources, Volvo has chosen the plant to produce the new S60, which will replace the S60 and S40 sedans, and the V60, which will be a station wagon version of the S60.

Last year Volvo built about 240,000 cars in Ghent. The carmaker makes the C30, XC60, V50, S40 and S60 models there.

You may e-mail Johan Dillen at autonews@craincom.de