VW to Shut Down Only U.S. Plant; 2,500 Affected
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WOLFSBURG, West Germany — Volkswagenwerk AG announced today that it will shut down its only automobile factory in the United States because of declining demand for its U.S.-built Jetta and Golf models.
The company said 2,100 assembly line workers and 400 white-collar employees will be affected by the closing, but added that it will try to find a buyer to limit the impact on the region near the plant, which is outside New Stanton, Pa.
Production at the plant will be phased out by the end of the 1988 model year, and after that cars for the North American market will be made in West Germany.
U.S. executives have said VW’s U.S. sales are down sharply this year and that the company has only about 2% of the American market with annual sales of about 210,000.
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