Ford Espana SA has announced cuts in production at its car plant in Spain in February because of a slump in car sales aggravated by consumer concern over the gulf war.
The Spanish unit of giant U.S. carmaker Ford Motor Co. plans to reduce output by 3,800 cars next month at its main Almusafe plant in southeastern Valencia, the company said.Other carmakers, such as France's PSA Group, maker of Peugeot and Citroen vehicles, have already announced hundreds of layoffs because of weaker sales.
But the Ford cutback will not extend to the company's nearby engine plant, which is producing 2,424 units daily.
And General Motors Espana SA, the Spanish unit of General Motors Corp., and the SEAT unit of Germany's Volkswagen AG, both recently announced increased production at their Spanish plants to meet growing demands for their smaller cars in Eastern Europe.
Total car sales in Spain last year fell 12.6 percent, underscoring the general slowdown in the Spanish economy.
Sales of imported and domestically made Ford cars in Spain dropped 11.5 percent to 141,638.
The decline led Ford Espana to turn to foreign markets. But the company said it expected export sales to worsen because demand is up for diesel-motor cars and cleaner-burning engines, neither of which is produced at Ford's Spanish plant.