Volkswagen will cut Touran (a C-segment MPV/minivan) production this year in response to slowing demand for the model which was launched in 2003 and 'facelifted' in 2007.

A German newspaper said that, instead of producing 156,000 units this year as originally planned, the Volkswagen subsidiary Auto 5000 will now produce just 138,000.

Auto 5000, based in Wolfsburg, also produces the new Tiguan small SUV. Demand for that is currently so high waiting lists are six to 12 months long. The slack left by the Touran cutback will be taken up by Tiguan output.

Auto 5000 subsidiary was set up as a separate manufacturing subsidiary in 2001. It took on long-term unemployed and paid them less than the other Wolfsburg factory employees.

Several vehicle manufacturers earlier this week said they expected to cut back some vehicle production during the rest of this year. But a Volkswagen spokesman said there was enough flexibility in his company's production system to respond to changes in demand.

Volvo axes 4,000 more jobs