Daimler to suspend production for a month
German carmaker Daimler, hit by falling demand amid the global financial crisis, plans to suspend production for a month beginning in December, as woes continue to pile up for the global auto industry in the growing recession.
The break in production would begin on December 11 and last until January 12, Frankfurter Allgemeine Sonntagszeitung reported, citing a company spokesman.
Daimler is the latest to report cutbacks in production and layoffs. Volkswagen, Germany's second-largest carmaker, on Friday said it will cut output and eliminate 750 temporary jobs, while many US, European and Asian carmakers are also dialing back production.
Chrysler is to lay off a quarter of its workforce, South Korea's Hyundai reported a big drop in sales and Fiat, Ford, General Motors and Renault are all struggling.
Daimler, the first luxury car maker to present its quarterly results, unveiled big falls in profits on Thursday and issued a new profit warning owing to the global financial crisis.
"The financial crisis is turning into an economic crisis," Daimler chairman Dieter Zetsche told a telephone news briefing. It provoked "in recent weeks a dramatic slump on our major markets," he said.
"The situation is very challenging," Zetsche added, "we are living in extraordinary times."