October 27, 2008

European Automakers Schedule Cutbacks

German and French carmakers have said they would shut down plants temporarily in reaction to the economic slowdown.

BMW said it would halt production at a Leipzig, Germany, plant for four days, the EU Observer reported Monday. Daimler, makers of Mercedes brand, said it would cut production for as long as five weeks, the report said.

In France, Renault and Peugeot-Citroen also announced production cuts.

Renault said it would also close several plants temporarily in France and Romania. Peugeot-Citroen said it was cutting back its production goals 30 percent, the Observer said.

European financial firms are continue to show weakness, the report said. In Germany, two banks, West LB and HSN Nordbank, applied for government assistance, the Observer said