Volkswagen to Cut Passat Production in Germany

VIENNA – Volkswagen plans to reduce Passat output at its plant in Emden, Germany, as a result of slumping European sales.

The plant will extend its summer shutdown two days, then cut daily production beginning Aug. 6, a spokesman is quoted as saying by German media.

The measure means the facility, which builds up to 1,200 units daily, will reduce output by about 100 cars per day.

It is expected production will remain at the slower pace through the end of 2013.

Volkswagen already halted Emden production for several days earlier this year. It makes the Passat sedan, wagon and CC coupe at the plant.

Emden employs about 8,800 people, including some 860 temporary workers, the Ostfriesen-Zeitung regional newspaper reports. Volkswagen plans to offer some 500-550 temporary employees the option of shifting over to the Wolfsburg factory, which needs additional workers to meet excess demand for the new Golf.

The temporary workers are to return to Emden in 2014 when Volkswagen will launch the next-generation Passat and higher volumes are expected.

Some of the temporary workers also may move to Porsche's Leipzig operation as permanent employees.

There are several reasons Passat sales have been adversely affected by the industrywide European sales slump more than other VW models. Emden supplies the car mainly to European markets, and the current model is nearing the end of its lifecycle. Fleet orders in German and some other markets also are down.