Audi Trims Production

INGOLSTADT, Germany — Saying that it "will not be able to permanently elude the negative impact of the current financial crisis," Audi has announced that it will cut production at its plants in Ingolstadt and Neckarsulm in late February.

"The overall demand in some major markets has dropped so drastically, especially in the last few weeks, that we've been forced to act," said Werner Widuckel, member of the board of management for human resources at Audi AG, in a statement. "This is our way of reacting to the downward trend in demand on worldwide car markets."

Ingoldstadt is Audi's biggest production facility. It builds the A3, A4 and A5. Neckarsulm builds a wide range of Audi vehicles, including the A6, S6, S8 and R8 supercar.

Audi hastened to add that it is "confident of having good prospects for the future."

"Preparations are therefore continuing at full speed for the start of production of the six new models due for launch this year," said Frank Dreves, member of the board of management for production at Audi AG, in a statement.

Earlier this month, Bentley said its Continental line will stop for seven weeks and the Bentley Arnage line will stop for six weeks this spring, a move triggered by the global economic downturn. General Motors on Monday announced yet another round of layoffs in the U.S.

Inside Line says: Audi may have had a new sales record in 2008, but it is not immune to the woes of the global auto industry.