Automotive

Global - Peugeot announces plan to slash costs, jobs in 2012

Source: The Bangkok Post, 26 October 2011

French auto giant PSA Peugeot Citroen on Wednesday announced an 800-million-euro cost-cutting plan for next year that is expected to include lay-offs amid a stagnating European car market.

The company, France's largest automaker and Europe's second-largest, employs over 205,000 people worldwide, including 100,000 in France. The savings plan comes after the company announced that sales in its cars division was down 1.6 percent to 9.3 billion euros ($12.94 billion). However, overall sales were up 3.5 percent in the third quarter to 13.45 billion euros. Saint-Geours said the company expected growth in the European market to stabilise, but to grow seven percent in China, six percent in Latin America and 30 percent in Russia. CGT union representative Bruno Lemerle slammed the savings plan as "scandalous."

India - Thai floods disrupt Indian auto firms' ops

Source: The Business Standard, 30 October 2011

Tata Motors, India's biggest vehicle maker by revenue, is being forced to suspend work at its plant in Thailand where it makes the stylish single and double cab pick-up truck Xenon in partnership with a local company. As Bangkok remains under constant flood alert, several automotive manufacturers have seen their plants inundated with more than knee-high waters entering the main vehicle assembly area also crippling supplies of essential auto components.

In a statement a Tata Motors spokesperson stated, "We have kept the plant's operation suspended this week as a precautionary measure, as is reasonable. We will review the situation on Monday. We have stocks both of finished vehicles and material."

Japan - Honda to suspend Philippine production

Source: The Mainichi Daily News, 02 November 2011

Honda Motor Co. said Wednesday it will suspend operation at its Philippine plant from Thursday, while also downsizing output in other countries as the impact of supply chains disruptions caused by the Thai flooding continues to spread globally.

Domestically, the company said it will slash output by around half at its plants in Sayama, Saitama Prefecture, and Suzuka, Mie Prefecture, from Monday. It also said it began downsizing production in Britain from Oct. 31, while it plans to cut 30 percent of the production volume at its plant in Brazil from Monday.

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