Seat cuts production

Article by Christian A., on August 29, 2010

Seat, the Volkswagen's Spanish car maker, will continue to reduce production at its chief factory in Catalonia in the first half of next year in reaction to plummeting sales.

The manufacturer of the Ibiza and Leon said that it will stop work from Feb 2 and June 30 at its Martorell factory near Barcelona from seven and 29 days on different production lines.

It did not mention how many personnel would be affected by this decision, but La Vanguardia, the regional publication, said the firm would shelve 5,300 contracts for employees. Last year Martorell had a workforce of 9,700.

"Seat will adjust production at the Martorell plant in the first half of 2009 to face the persistent, widespread fall in markets, above all Spain as well as its principal export markets and their uncertain evolution," Seat said in its website.

The work stoppage comes on top of a program begun last month and going until July to momentarily discharge about 750 employees and reduce yearly manufacture by about 5 percent or an equivalent of 20,000 vehicles.

The sales of Seat in Spain have plummeted 24.8 percent to 96,900 in the first 11 months of the year said carmakers association Anfac, in contrast to a 26 percent downturn across the industry, a tendency which has sped even more in previous months.

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