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Volkswagen to cut jobs in South African plant

Business Materials 30 January 2009 11:21 (UTC +04:00)

German automaker Volkswagen AG plans to cut 400 jobs at its South African plant, news reports said Friday.

Company spokesmen Bill Stevens said the cuts were necessary because of an expected 10-per-cent drop in new car sales this year, the SAFM radio station said.

Furthermore, Volkswagen plans to cut down production around the Easter holidays to cushion drops in export demand.

Volkswagen builds its right-hand-steered Golf cars in South Africa for export, reported dpa.

German competitor Mercedes-Benz only recently announced drastic restructuring measures at its East London plant, affecting 800 of its 3,000 staff in the British capital. It is one of three locations that builds the company's C-class car for US export.

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