Dongfeng, BYD rumored to cut production

Shanghai, December 12 (Gasgoo.com) Dongfeng Motor and BYD Auto are the latest Chinese automakers likely to cut production due to market slowdowns, Chinese automotive website, auto.163.com, reported.  

The report said the two auto companies did or will lay off more than 20,000 workers, though it has not been officially confirmed.

A source from Dongfeng Motor told reporters that around 10,000 workers at its subsidiary axle plant and trunk plants have already left for home for an uncertain period. These workers will remain on the payroll during the shutdown.

Another fast-growing auto maker BYD is expected to lay off more than 10,000 workers by the middle of this month, company staff said.

On Wednesday Volkswagen's joint ventures in China are reported to cut more than 15 working days of production from mid-December until the beginning of January, while GAC Toyota Motor Co., Toyota Motor's JV with Guangzhou Auto is reported to cut production in 2009 by 10% to weather the auto market slump.

Data released yesterday by China Association of Automobile Manufacturers (CAAM) said that passenger vehicle sales for November fell 10.28 pct year-on-year to 522,800 units, and commercial vehicle sales fell 25.96 pct to 162,300 units.