UPDATE 1-N.Hydro to cut output, staff at car parts plant

(Adds comments from Norsk Hydro, share price)

OSLO, July 4 (Reuters) - Norwegian aluminium group Norsk Hydro (NHY.OL: Quote, Profile, Research, Stock Buzz) said on Friday lower demand from European auto makers would cut second half production at its Raufoss car parts plant by about 15 percent compared with the first half of 2008.

The company said it would have to shed staff.

Spokesman Halvor Molland said it was not yet clear how many of the 500 employees at the plant would be forced to leave. He said some cuts would be temporary while others would be permanent.

Norsk Hydro said the European car manufacturing industry in general was suffering, hurting suppliers.

"It is no secret that the car manufacturing industry is seeing slow sales figures, and as a supplier to the industry, this affects us," Molland told Reuters. (Reporting by Aasa Christine Stoltz; Editing by David Cowell)