The struggling Spanish subsidiary of the German automotive giant Volkswagen, Seat, announced that due to a decline in demand, it plans to reduce production at its factory in northeastern Spain next year.
The company therefore plans to lay off 7,484 workers from that production facility, said a Seat representative."The plan anticipates a reduction in production at that factory next year by a total of 51 working days spread across three production lines", he explained."In recent months, there has been a recovery in car sales, the market is in better shape, but that is not enough and we are forced to reduce production".The extent of the reduction is smaller than this year’s, during which the number of working days was reduced by 115.Due to the decline in sales in Europe, most car manufacturers in Spain have implemented cost-cutting measures this year.The Spanish market is gradually recovering, mainly thanks to a government program subsidizing the purchase of new cars with €1,500 to €2,000, which came into effect in mid-May.In October, a 26.4 percent increase in new car sales was recorded in Spain, the second consecutive month. (H)
