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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Nissan to slash production at Spanish plant AFP - Sunday, February 7 Send IM Story Print Nissan to slash production at Spanish plant Slideshow: Full Photo Coverage: Business & Economy MADRID (AFP) - – Japanese carmaker Nissan said Saturday its Avila plant in Spain will keep running at less than 50 percent capacity for at least three years, as unions said it was planning to lay off half the factory staff. The Avila plant -- one of several operated by Nissan in Spain -- is equipped to turn out 26,000 vehicles per year, most of them small vans, but has been functioning at a fraction of its capacity since 2008, a Nissan spokesman said. "For the past two years we have had to cut production and the situation is going to continue because our forecast is for 11,000 units per year over the next three years," the spokesman said. Spanish demand for cars collapsed as the country slumped into recession in the wake of the global downturn in 2008, with construction firms -- the main clients for the Alteon and Cabstar model Nissan vans -- particularly hard hit. Unions at the plant in central Spain, quoted by local media, said earlier that the group was planning to lay off 300 of the factory's 650 employees. "Until now we have coped with the fall in production by reducing work hours, now we are going to have to look at all the possible solutions," the Nissan spokesman said. "We have not made any announcements, no decision has been made, we will make proposals to the works council in the next two or three weeks." Japan's third largest automaker, Nissan last year slashed working hours for some 2,000 employees at its plants in Barcelona and Montcada in northeastern Spain due to falling demand. Last July it sacked 698 people in Spain as part of a world restructuring of its operations. Recommend Send IM Story Print Related Articles Union vows to press ahead to preserve Conn. jobs AP - Sunday, February 7 Russia Medvedev wants lower lending rates Reuters - Sunday, February 7 Dubai's Shuaa Capital narrows Q4 loss to $42 million Reuters - Sunday, February 7 Nissan to slash production at Spanish plant AFP - Sunday, February 7 Dubai's Shuaa Capital narrows Q4 loss to $42 mln Reuters - Sunday, February 7 News Search Top Stories G7 preoccupied with eurozone debt, China 'bubble' US urges EU assembly not to block bank data deal JPMorgan's chief reaps 16-million-dollar bonus Jackson doctor to be charged Monday: prosecutors Mixed report shows US loses 20,000 jobs, unemployment dips More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended JPMorgan's chief reaps 16-million-dollar bonus Mixed report shows US loses 20,000 jobs, unemployment dips Jackson doctor to be charged Monday: prosecutors BAE to pay 450 million dollars in fraud fines Fury heats up after new AIG bonuses More Most Viewed » Fury heats up after new AIG bonuses More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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