VW in summer shutdown

July 13, 2001 Posted: 0812 GMT

LONDON (CNN) -- Europe's biggest carmaker Volkswagen on Friday announced a summer shutdown for the first time at its main plant in Germany.

VW said it will close its plant at Wolfsburg, where the company has its headquarters, for  three weeks in August. The company said its production programme would be unaffected, but gave no details.

Wolfsburg, situated in northern Germany about 70 kilometres (43 miles) east of the city of Hannover, has been the main plant since the company was founded in 1937.

"We will have a shutdown holiday at Wolfsburg this year whereas in previous summers our flexible system meant we kept production going," said a company spokesman.

VW's move comes as German market conditions remain weak as the country's economy suffers growth and employment woes.

The latest figures on West European new car sales released on Friday show sales in Germany rose 3.5 percent in June compared with a year ago, but are still 2.8 percent lower in the first six months of the year compared with 2000.

Overall car sales in Western Europe rose by 6.8 percent in June compared with the same month a year ago, with sales in France jumping almost 20 percent, according to the Association of European Carmakers.

UK new car sales rose 11.4 percent because of what the association called strong consumer confidence.

VW (VOW) shares fell 0.8 percent in Frankfurt to 52.66 after the shutdown was announced.

In Paris, Renault (PRNO) shares rose 1.8 percent to 54.70 and Peugeot-Citroen's (PUG) stock gained 1.3 percent to 53.55 as investors appeared to welcome buoyant sales.

	Want the full story? Search for free company info...
	Enter Company Name:-