NedCar seeks Dutch government’s help

3rd December 2008, Comments 0 comments

Downturn in car sales has forced the automobile manafacturer to apply for reduction in working hours for 30 percent of its workforce.

3 December 2008

THE NETHERLANDS – Automobile manufacturer NedCar has applied for a reduction of working hours for 400 of its 1,300 workforce, according to NedCar's works council.

If Social Affairs Minister Piet Hein Donner grants the request, the workers will receive compensation from the special unemployment benefit fund which has been set up to help ailing businesses temporarily weather the credit crisis.

The wholly-owned subsidiary of Mitsubishi Motors Corporation, which has production facilities in the province of Limburg, has reported a downturn in sales since the credit crisis.

A report by Dutch data processing company RDC says vehicle sales dropped dramatically in November.

According to the preliminary data, 30,000 new vehicles for personal use were registered in November, a 21 percent fall compared to the same period in 2007. Sales in October were also 0.7 percent lower than in October 2007.

So far, 64 companies have applied to the social affairs ministry since the general economic slowdown. Ten have received compensation packages.

[Radio Netherlands / Expatica]

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