VW's drastic US job cuts
|
[09/07/2007] Frankfurt, Sept 6 - Volkswagen, the world's fourth largest carmaker, plans to cut more than a quarter of its US staff as it moves its local headquarters from Detroit, it said on Thursday.
|
Frankfurt, Sept 6 - Volkswagen, the world's fourth largest carmaker, plans to cut more than a quarter of its US staff as it moves its local headquarters from Detroit, it said on Thursday.
Volkswagen also announced a five-point plan to restructure its operations in the world's largest car market, including developing models for US consumers, changing brand positioning, alterations in its sales network aimed at boosting dealer margins and possibly localising car production.
The group has this year ceased to report results for North America but in 2006 it narrowed its operating loss to ˆ607m from ˆ866m in the prior year.
Roughly 600 jobs will remain in the Detroit suburb of Auburn Hills, while another 400 are expected to take up positions in the new headquarters in the greater Washington, DC area. The remaining 400 jobs will be cut, VW said in a statement.
"The company has already taken steps to reduce its staff through natural fluctuation and severance packages," the company added.
Volkswagen of America, Audi of America, Audi Financial Services and Volkswagen Credit will begin the move in April next year to Herndon, Virginia, near the District of Columbia.
Shares in VW edged 0.2% lower to ˆ150.07 by 1340 GMT, underperforming a 0.5% gain in the DJ Stoxx European autos index.
Volkswagen also announced a five-point plan to restructure its operations in the world's largest car market, including developing models for US consumers, changing brand positioning, alterations in its sales network aimed at boosting dealer margins and possibly localising car production.
The group has this year ceased to report results for North America but in 2006 it narrowed its operating loss to ˆ607m from ˆ866m in the prior year.
Roughly 600 jobs will remain in the Detroit suburb of Auburn Hills, while another 400 are expected to take up positions in the new headquarters in the greater Washington, DC area. The remaining 400 jobs will be cut, VW said in a statement.
"The company has already taken steps to reduce its staff through natural fluctuation and severance packages," the company added.
Volkswagen of America, Audi of America, Audi Financial Services and Volkswagen Credit will begin the move in April next year to Herndon, Virginia, near the District of Columbia.
Shares in VW edged 0.2% lower to ˆ150.07 by 1340 GMT, underperforming a 0.5% gain in the DJ Stoxx European autos index.
[Sourse]
celebrity gallery | travel photo | motorcycle gallery | Dine in the USA
| Share You car picture |
| Website Contents © All Rights Reserved |
Conception by Universal Studio
|