VOLKSWAGEN TO IDLE U.S. PLANT, 1,650 WORKERS
Volkswagen of America said it
will shut down its U.S. car assembly plant for two weeks and
idle 1,650 workers.
    The wholly owned subsidiary of Volkswagen A.G. said the
facility will be closed for two weeks starting today to adjust
inventories.
    The 1,650 hourly workers will be laid off until May 11.
    Volkswagen's sales of U.S.-made cars this year have dropped
sharply below last year's figures, a spokeswoman said.
    So far this year, sales are down nearly 40 pct compared to
last year. The U.S. company has sold a total of 13,218
U.S.-made cars so far this year, down from 21,943 during the
same period last year.
    In its most recent 10-day sales period, April 11-20, the
company sold 30.7 pct fewer cars. It sold a total of 1,167 cars
during the period against 1,683 in the same 1986 period.
    The spokeswoman also said inventories of Volkswagen's cars
are running as high as 335 day's supply as of April 20, well
above the inventory level of 50 to 60 days supply considered
acceptable by the U.S. car industry. The highest inventories
are on the company's new "GT" model.
    Stocks of Volkswagen's 16-valve "GTI" model are 164 days'
supply. Inventory levels for other Volkswagen models are as
follows--"Golf" gas-powered-87 days, "Golf" diesel-powered 20
days, regular "GTI"-83 days.
 Reuter
