If there is one single industrial product that has symbolized the Swedish "middle road," it must be the Volvo car: high quality, middle to upper class, safety first, and manufactured in a humane way, without a traditional assembly line. Now this symbol has run up against serious problems. In November 1992, Volvo announced that it would close down two of its assembly plants in Sweden, precisely the two plants in Kalmar and Uddevalla where the new assembly concept was developed. Furthermore, future expansion would only take place at Volvo plants outside Sweden. Saab, which had already been sold to General Motors in an earlier crisis, also announced reductions in production and employment levels. These cutbacks are not just a simple reflection of the global economic crisis. They announce more profound changes in the Swedish model which have taken place over a longer period of time. They also indicate that the middle way has become a dead end.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.