Friday 29 Mar 2024
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KUALA LUMPUR: Naza Automotive Manufacturing Sdn Bhd (NAM), which assembles the Peugeot and Kia brand of cars, said it had laid off 255 assembly factory staff at its plant in Gurun, due to “tough economic conditions” brought about by the weakening ringgit, as well as declining domestic demand and exports.

NAM employed 601 people at the Gurun plant. Following the lay off, the plant is now left with 346 employees.

“At this time, our priority and focus is to assist and support those affected to ensure that their welfare is taken care of. We have provided a separation package to enable them to plan their future endeavours,” said Naza Corp Holdings Sdn Bhd in a statement yesterday.

“Meanwhile, we shall continuously address measures of cost efficiency without compromising our quality of service to our customers,” it added.

Naza Corp’s explanation came after a report by The Malaysian Insider on the same day. TMI reported that about 300 NAM staff had been laid off.

Hong Leong Investment Bank Research, in its July 29 automotive sector report, said that for the first half of the year ended June 30 (1H15), Kia vehicle sales shrank 44.2% to 2,654 units from 4,763 units sold in the same period last year.

Peugeot sales had also dropped 46.3% in 1H15 to 1,757 units from 3,269 units in the same period last year.

 

This article first appeared in digitaledge Daily, on August 28, 2015.

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