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Volkswagen to Cut Output

Won't cut jobs

Volkswagen will cut output to deal with effects of the financial and economic crises, but denied on Oct. 24 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.

Lke 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, "We note with concern that the situation for the global sector deteriorated markedly in September."

VW has managed better than many rivals to deal with the deteriorating market environment, and said on 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%.

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

Copyright Agence France-Presse, 2008

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