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GM to cut production in Spain due to slowdown

MADRID
Wed Aug 27, 2008 8:03am EDT
American flags flutter in the wind in front of the General Motors Corp. headquarters in downtown Detroit, Michigan November 7, 2007. REUTERS/Rebecca Cook

MADRID (Reuters) - General Motors GM.N will trim production at its Figueralas plant in Zaragoza in eastern Spain due to the slowdown in its main markets, a spokeswoman said on Wednesday.

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"There will be a two-day technical stoppage in September as well as a four-day break in October to reduce output in line with demand," the spokeswoman at the plant said.

The six-day shutdown will mean production will be reduced by about 12,000 cars.

A union source told Reuters management had not ruled out further technical stoppages if car sales continue to decrease.

"Management has informed unions that there may be another day off if the market does not meet supply," the source said.

The 7,500 strong workforce at GM's Figuerelas plant produces about 2,000 vehicles per day, making the company's Combo, Meirca and Corsa vehicles.

Last year, output at the Figuerelas plant, which exports 90 percent of its production, hit a new record of 486,000 cars.

General Motors is the first car manufacturer operating in Spain to announce a cut in production due to the economic slowdown.

According to data from car manufacturers' association Anfac, new car sales in Spain fell 19.2 percent over the first seven months of the year. Local media have said this decrease sharpened in the month of August to a drop of nearly 40 percent.

Anfac is due to publish car sales data for August on September 1.

(Reporting by Robert Hetz; Writing by Jonathan Gleave; Editing by Quentin Bryar)



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