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FAW-VW cuts Magoton, Sagitar output for New Bora



Shanghai, September 18, 2008 - ( The second plant of FAW-Volkswagen (FAW-VW) has began cutting jobs and the production of the already high-stockpiled Magoton and Sagitar cars to give way to the upcoming New Bora model, reported Beijing Times today.

FAW-VW's second plant has cut 700 production-line workers, mostly fresh graducates, interns and hourly workers for the reason that Magoton and Sagitar underperformed in the first half sales and dealers are facing pressure of heavy stock, a dismissed intern told the newspaper.

Some production lines of Magoton and Sagitar at the second plant has been suspended and the trial mass production of FAW-VW's key model New Bora has started, sources said.

The New Bora, combining VW's latest design concept with Chinese elements, was unveiled at the 2008 Beijing auto show as FAW-VW¡¯s all-new A-level car. The new model is about to go on sale and has received orders since August 8.

Actually, most automakers now have cut jobs and output more or less, but they will not make it public, said Zhongshi, a famous industry analyst. Besides FAW-VW, it is reported that Changan Ford Mazda Automobile has suspended production of Mazda3 in its Chongqing plant from July, and Changan Ford also cut production largely and about 2,000 jobs.

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