VW Trimming Jobs

The Frankfurter Allgemeine Zeitung (FAZ), which gave no source for its report on Saturday, said the plants concerned are in Brussels (4,900 employees), Palmela in Portugal (2,800) and Pamplona in Spain (4,300).

At the same time, the VW director of human resources told the regional newspaper Hannoversche Allgemeine Zeitung (HAZ) that staff reductions were expected at the three plants, without specifying the number of layoffs.

"We have a problem (in our factories) in western Europe, and we are going to reduce personnel there, as we have done in Germany," VW's Horst Neumann told the HAZ. "The market is growing in countries like Russia, India and China, but at the same time other countries like Spain are losing their advantage in terms of costs.

Plants will stay open, if possible

"Moreover, we must stop using these factories at only three quarters of their capacity," he said, adding that the company wants "to avoid if possible" closing the plants.

According to the FAZ, "VW wants to use as a basis the staff cuts in its six plants in the west of Germany, where 20 percent of the jobs are going to be cut."

Taking a total of 12,000 jobs in Belgium, Portugal and Spain, the FAZ calculated that 2,400 jobs are threatened.

Earlier this year VW said it would be cutting 20,000 staff in Germany over the next three years to improve its financial position.

In September it reached a deal with trade unions to do away with the four-day week in its loss-making western German factories where staff will now work longer hours without extra pay.

The FAZ reported that VW plans to transfer some production from Brussels to its Wolfsburg plant in Germany.