SEAT, the ailing Spanish subsidiary of German auto giant Volkswagen, has announced that it aims to reduce production at its plant in northeastern Spain next year because of the reduction in demand.

According to a SEAT spokesperson, about 7,484 employees will be affected by the cuts at the plant in Martorell.

Further, he said, “The plan envisages a period of 51 days of work reductions spread out over three production lines at the factory in 2010. The sale of cars has recovered in recent months, the market is better, but that is not enough, and we have had to adjust production.”

The measure is less severe than the cutbacks implanted in 2009, when workers experienced work reductions of 115 days.

Most of the automakers in Spain have enforced cutbacks in 2009 because of the slump in sales in Europe.

However, market in Spain is improving slowly and it is due to a government subsidy for new car purchases of between 1,500 and 2,000 euros, which came into effect in mid-May.

In the month of October, new car sales in Spain rose 26.4%, the second straight monthly increase.