Skoda Auto to shorten the workweek to 4 days

PRAGUE — Czech carmaker Skoda Auto AS, a unit of Germany's Volkswagen AG, announced plans Thursday to cut work hours because of falling demand.

The measure, which will shorten the workweek to four days, was scheduled to take effect Jan. 19 and was expected to continue till June, Skoda Auto spokesman Jaroslav Cerny said late Thursday after talks with the company's labor union.

Cerny said demand had been falling particularly in Western European car markets.

The labor deal was meant to help protect Skoda Auto workers from layoffs.

Skoda Auto already halted production in October and November and plans to do the same starting Dec. 19 in all three of its factories in the Czech Republic for more than three weeks. The move will cut production this year by 31,000 units.

Skoda Auto is the country's largest exporter and delivered a record 630,032 cars in 2007.

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