BERLIN (Reuters) - Volkswagen is suspending production at its main gearbox plant as the carmaker grapples with reduced demand and the effects of technical problems at another German site.
Europe's largest automaker will halt production in some areas of its factory in Kassel on Feb. 1, Feb. 5 and Feb. 8, a spokesman for the factory said on Friday, confirming a report by regional newspaper Hessische Niedersaechsische Allgemeine.
Production at Kassel, where Volkswagen (VW) produces more than 4 million gearboxes a year and makes body parts for the Passat saloon, was already suspended on Friday with 400 workers affected, the spokesman said.
Output at Kassel, where VW employs about 16,000 people, is affected by slower demand for components and technical problems at the stamping plant of VW's factory in Emden where the Passat is assembled, he said.
Production at Emden, which has a workforce of about 9,600, may remain shut on Monday after being suspended on Friday, he said, without being more specific.
VW has said it is bracing for tough markets this year after suffering the first drop in sales of its core namesake brand in more than a decade in 2015 as it battles to contain the damage from its emissions scandal.
(Reporting by Andreas Cremer; Editing by Greg Mahlich)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
