LONDON (AP) -- Volkswagen AG, Europe's biggest automaker, said Tuesday that 3,500 workers in Germany have signed up for severance packages as the company tries to pare down the number of employees and cut costs.þþChief Financial Officer Dieter Poetsch, speaking to analysts at a conference in London, said that the employees had agreed to the severance plan.þþSince June, about 85,000 VW workers in western Germany have been offered severance packages ranging from 41,000 euros to 250,000 euros ($52,521-320,250), depending on their salary level and years of service. The offer is open until June 30, 2007.þþVolkswagen disclosed last year that it intends to cut as many as 20,000 jobs in Germany in a bid to rein in costs and streamline production.þþThe company has also sought to trim workers elsewhere. On Monday, Volkswagen workers ended a weeklong strike at the company's largest and oldest Brazilian factory after the automaker suspended a plan to lay off about 1,800 production employees.þþVolkswagen announced in May that it would restructure to lower production for export markets and cut labor costs to increase profitability. VW had said it planned to cut as many as 6,000 jobs in the South American country through 2008.þþShares of Volkswagen rose nearly half a percent to 63.63 euros ($81.51) in Frankfurt trading.þþ
Source: NY Times
