Slow Sales Prompt Furloughs at Opel Spain

MADRID – Sales gains in the domestic market as well as Western Europe in August are not enough to prevent Spanish auto makers from scaling back production, idling workers and seeing plant closings by two major suppliers.

Light-vehicle deliveries last month jumped 7.7% in Western Europe and 5.9% in Spain from year-ago, industry associations here report.

Thousands to be idled at Opel Spain plant.

But year-to-date, sales are off 1.3% in Western Europe and have plummeted 22.2% in Spain from like-2010.

Adam Opel will idle the 7,200 workers at its Figueruelas plant near Saragossa for 16 working days this year and for 46 in 2012.

The announcement comes just days after Opel/Vauxhall CEO Karl Stracke visited the plant and reiterated the auto maker’s intent to transfer Corsa production from the Eisenach, Germany, factory to Figueruelas at the end of next year.

Union officials say the furloughs will affect 5,400 workers at components makers that supply the Opel facility.

Lear says it will close its plant in La Rioja, losing 305 jobs.

The company says the decision is based on continuing financial losses, high production costs and declining sales.

Visteon confirms it is halting production at its Cadiz Electronica facility, which employs 396 people. The supplier cites declining demand for its products.

“Not finding new products to assemble in Cadiz and after deeply analyzing the future long-term perspectives for the plant, Visteon has decided to definitively close it,” a company spokesman says.