VW scale back production

So far most of the fallout from the ‘new car crash’ have been somewhat contained, but when production lines at VW and Audi start to fall silent, we are in no doubt that this is a global phenonomem. The short week at seven plants across Germany is the first in 26 years of production and in all 86,000 VW group staff are affected. Although the parent company insist that as soon as the much vaunted car scrappage schemes start to have an effect this cut back in production will be limited to one week only. The disconcerting thing is that of all the major volume car makers VW is seen to be resisting the downturn and In the UK more so than many others. Although they are obviously reeling back on forecasts, demand has remained fairly constant and they seem to be in better shape than most.

Let’s hope that this measure aimed to keep inventories of unsold cars from piling up, will have the desired effect, because although there are no VW’s or Audis built here there is a large dealer network which employs thousands of staff and therefore its continued growth remains crucial to the well being of car retailing in the UK.