Are you sure?

Kia Motors says to cut production at Slovak plant

  Kia Motors, South Korea’s No. 2 car maker, said on Wednesday it would temporarily cut production at it Slovak assembly plant due to weak demand on European markets.

“We will limit production to only one (working) shift during the next two weeks,” said Kia Motors Slovakia spokesman Dusan Dvorak. Dvorak declined to comment on production changes in terms of cars.

Kia said in November it expected to make around 240,000 cars in Slovakia in 2009, but the plans may have since changed due to the deepening global economic crisis. Dvorak said the company would be ready to increase production again once market conditions improve.

The Kia plant is one of three car assembly factories that are the core of Slovakia’s automotive industry, a key economic pillar of the euro zone newcomer. Slovakia also hosts factories of Germany’s Volkswagen and France’s PSA Peugeot Citroen.

The three plants have a combined output capacity of around 900,000 units a year. The economy ministry said last week the car industry expected a decline in output by 18-25% this year as the global crisis slashed demand. (Reuters)