DaimlerChrysler Joins Other EU Car Guys And Cuts Output

FRANKFURT Reuters reported that DaimlerChrysler AG on Tuesday became the latest automaker to cut production amid further worries about the effects of weakening economic conditions on auto demand.

DaimlerChrysler plans to cut production at its truck plant near Karlsruhe from the start of 2002, said a representative of the workers' council.

The approximately 10,000 workers at the Woerth plant near Karlsruhe will work a four-day week from the beginning of January to the end of February, said representative Gerd Rheude.

Rheude also said the company now planned production of 66,300 trucks for 2002, down from 78,300 trucks in 2001.

Several European automakers have reduced production to help offset anticipated weakness in demand in the wake of September's attacks Hon the United States.

The European truck market is looking particularly weak. Last week, Germany's MAN said it would cut 4,400 jobs at its truck unit by the end of 2002 to help it weather the slump.

Late on Monday, Volkswagen said it was introducing a four-day week at its Emden plant where it makes its high-margin Passat model.

As a result, production in 2002 will be around 36,000 units below this year's level which is expected to be around 259,000 units.

Also on Monday, VW's Czech Skoda unit had said it was negotiating further production breaks early next year as a result of weaker export markets.

Skoda had already said it would cut three afternoon shifts next month and remain closed for three days in late December.