New sales slump at Spanish car giant, job cuts

By Staff Reporter SPANISH sales at Volkswagen's Seat unit will fall over 22 percent in 2008 and decline at a similar rate in 2009 as Spain's market fails to recover, the head of Seat told a newspaper. “I don't think the Spanish market will recover, given everything that's happening,“ Seat President Erich Schmitt told Spain's Expansion newspaper. Seat plans to lay off around 750 workers between November and July 2009 due to falling sales as Spain heads towards recession. Schmitt said Volkswagen had no plan to sell or close the unit. Trouble at Seat follows Spanish production cuts by competitors Ford and General Motors Schmitt said. Spanish salary accords, which index wages to inflation, had cut the competitiveness of Seat's plants.