Germany's news in English

Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Volkswagen to cut output

Share this article

Volkswagen to cut output
Photo: DPA
14:13 CEST+02:00
German auto giant Volkswagen will cut output to deal with effects of the financial and economic crises but denied Friday that it would eliminate 25,000 jobs and confirmed its 2008 sales targets.

By the end of the year, 750 temporary jobs of a total 3,700 in Germany would not be renewed, a VW statement said.

But a report in the Frankfurter Allgemeine Zeitung newspaper that 25,000 posts worldwide were on the line is "false," the biggest European carmaker said.

Like its main rivals however, VW would reduce capacity, using "its great production flexibility to adapt to changed market conditions," the company said.

Boss Martin Winterkorn had already warned that 2009 would be a "difficult" year.

Sales director Detlef Wittig said Friday: "We note with concern that the situation for the global sector deteriorated markedly in September."

In mid-day trading Friday VW shares had lost 8.74 percent to reach €208.99 amid a general rout of auto stocks on the Frankfurt stock exchange.

VW has managed better than many rivals to deal with the deteriorating market environment and confirmed Friday that sales this year would be better than in 2007, when they surpassed six million vehicles.

In the nine months from January to September 2008, VW said it had sold 4.8 million units, an annualized increase of 3.9 percent.

Slumping western European sales have been partially offset by strong increases in emerging countries like China and Brazil.

 
Get notified about breaking news on The Local

Share this article

From our sponsors

How to work 9-5 and travel the rest of the time

A full-time job shouldn't stop you from satisfying your wanderlust. The Local spoke to Travel After 5 blogger Alline Waldhem to find out her tips and tricks for travellers who only have 25 days of annual leave.