The truck maker is concentrating output of current Daily models at Valladolid so it can more quickly adapt its Suzzara, Italy, plant to production of the next-generation Daily starting in second-half 2014.
The first two versions of the program are credited with helping Spain’s auto industry recover from sales levels that had reached a 20-year low, contain unemployment rates currently at roughly 26% and raise more government revenue.
Low demand is cited as the reason for the furloughs and production rollbacks, even though global SEAT deliveries increased 10.2% in the first five months of 2013 compared with prior-year, according to WardsAuto data.
The agreement will integrate 10 plants in India and six in Europe with a total of 10,000 employees and enable CIE to increase its annual sales by more than one-third, from €1.6 billion to €2.2 billion.
German Lopez, chairman of Volvo Car Spain, says the red ink resulted from the overall contraction of the country’s automobile market and the delayed arrival of the new V40 5-door hatchback. He expects a return to profitability in 2013.
Networked vehicles that can communicate with each other and the infrastructure open up a new range of possibilities for user functions that will make driving safer, more comfortable and environmentally friendly, the supplier says....More