Hyundai Motor has cut its worldwide production target for the first quarter of 2009 by 17% year on year and switched its US plant to a three-day week.
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Hyundai now plans to build 590,000 vehicles compared to 712,000 units in the first quarter of 2008, industry sources told internet news provider eDaily, according to Reuters.
Hyundai had said last week it would cut domestic plant output by 25-30% in the first three months of this year.
Meanwhile, sources told Reuters the automaker’s US plant, which makes the Sonata sedan and Santa Fe mid-size SUV, is working a three day week this month due to low demand.
Hyundai declined to detail changes to production schedules at the plant near Montgomery, Alabama. But sources told the news agency the automaker had briefed suppliers and plant workers on its plans.
Hyundai’s US sales fell 48.3% to 24,037 units last month and were down 14% to 401,742 in 2008 in a US market off 18%.
In an attempt to boost sales, it recently introduced new finance packages that allow buyers to return a car without financial penalties in adverse circumstances, such as job loss.
Hyundai said it was ready to “quickly respond to changes in market conditions and customer demand.
“We are monitoring market conditions and will operate a flexible work schedule depending on customer demand during the month of January,” a plant spokesman said in a statement.
US sales chief David Zuchowski told Reuters at the Detroit show earlier this week Hyundai would adjust work weeks and working hours at the factory to reduce inventory.
He said the automaker wanted to reduce vehicle supply from 110 days now to 75 to 90 days.
