Dutch car maker sheds 668 jobs
12 July 2005AMSTERDAM — NedCar, the only large-scale manufacturer of passenger cars in the Netherlands, is to shed 668 jobs.
12 July 2005
AMSTERDAM — NedCar, the only large-scale manufacturer of passenger cars in the Netherlands, is to shed 668 jobs.
Some 300 of the surplus employees will remain in work temporarily as NedCar is setting up a secondment pool that will supply labour to other companies. These workers are guaranteed employment for 2.5 years with their current pay and conditions.
"We hope after that period that the situation will have improved and they can return to work with NedCar," an official with the FNV Bondgenoten union said on Tuesday. The other 368 workers will be let go by NedCar in September this year.
About 3,900 people currently work with NedCar situated in Born, Limburg province. The car maker is owned by Mitsubishi Motors and produces the Mitsubishi Colt and the Smart Forfour.
NedCar has attempted in recent months to cut back its over-production from the initial projected figure of 210,000 vehicles for 2005. This was cut to 115,000 cars in May and by a further 8,500 in June.
A company spokesperson said NedCar stands to built up losses of tens of millions of euros this year, mainly because of disappointing sales of DaimlerChrysler's Smart Forfour.
This is a far cry from 1999 when the company — then a joint venture between Mitsubishi and Volvo — produced about 260,000 cars. NedCar's results have gone into something of a free fall since Volvo pulled out last year.
[Copyright Expatica News + ANP 2005]
Subject: Dutch news; NedCar