SEAT Seeks to Cut Factory Output in Spain

Volkswagen AG's Spain-based SEAT brand has proposed several measures to reduce work hours at its two assembly plants in the country, thus shrinking output to cope with weak sales of models built there.

The unit says it will discuss the actions with its unions over the next two weeks.

SEAT seeks to suspend operations on one of three assembly lines at its factory in Martorell for 16 days between September and year-end. That line makes only the Audi Q3 crossover vehicle after the SEAT Exeo compact car went out of production there last week. No replacement for the Exeo is planned.

The company wants to stop work for 35 days next year on a second Martorell line, which builds the SEAT Leon small family car and Altea MPV. Unidentified sources tell Spanish news service Europa Press that SEAT plans to cut output of the Leon and Altea 17% from this year to 174,900 units in 2014.

The two actions at the factory would affect as many as 6,600 employees.

SEAT also proposes idling 570 workers per day on a rotating basis. That move would involve about 9,200 employees across all its Spanish production lines, including those at its nearby facility in Barcelona's Zona Franca.