DAF to shed more staff

DAF, the Anglo-Dutch truck maker, warned yesterday of further heavy job cuts after disclosing that losses for 1992 would be higher than the 100m guilders ( pounds 36.4m) forecast earlier in the year.

The warning coincided with figures showing that UK commercial vehicle production slumped by nearly a third in November, reflecting the sharp downturn in the Western European market overall.

Following a meeting of its supervisory board in Eindhoven, DAF said that current market conditions could mean 'further significant reductions' in employees throughout the company.

The fresh job cuts could hit DAF's UK operations, where the staffing levels have been reduced to 5,500 following the announcement earlier this year of 1,600 job losses across the group. The total workforce has fallen by 4,000 to 13,000 in the past three years.

DAF is expected to reach a decision in mid-January once reports from two firms of external consultants have been completed.

The likelihood that DAF will need to make provisions in its 1992 accounts to cover the further redundancies is one reason why losses for the year will be higher than forecast.

In the first 10 months of the year Western European truck sales fell by 9.4 per cent, forcing DAF to cut production for the year and reduce output in the first few weeks of 1993.

Figures from the Society of Motor Manufacturers and Traders show that commercial vehicle sales fell 29.8 per cent in November compared with a year ago.

Car production remained broadly flat at 116,647 - a rise of 0.23 per cent on last November.

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