Saturn to Trim Production 14%; No Layoffs Planned

Saturn Corp. said it is cutting production of its cars for the second time in less than four months, adjusting to soft sales it blames on the boom in sport-utility vehicles and minivans.

The General Motors unit plans to cut annual production by 21,000 cars, or about 14%, spokesman Greg Martin said Wednesday. The reductions will begin next week and last through mid-April.

Martin said none of the plant’s 8,800 workers will be laid off and that there are no plans to cut shifts. Workers will use the time when they are not building cars to perform tasks done on overtime, such as training and maintenance.

Since its introduction in 1990, Saturn has attracted buyers with its folksy ads promoting no-haggle dealers and a team concept of car building at its plant in Spring Hill, Tenn., about 30 miles south of Nashville.

But the company is adjusting to soft demand for small cars, as an increasing number of buyers choose sport-utility vehicles, trucks and minivans.

“Small cars are not aspirational vehicles in the North American market,” said Eric Noble, an analyst for AutoPacific Inc. in Santa Ana. “A buyer can have much more in the way of accommodation and cargo capacity without paying much more of a price in today’s market.”

Noble said a lack of new or revamped Saturn models also is affecting sales. Saturn’s sedan and wagon were redesigned in 1996 and the coupe was redone in ’97.

“We are looking down the road to add new members to the Saturn family, but we don’t have anything specific in mind,” Martin said.

Saturn sold 251,099 cars last year, down 9.9% from 1996.