Volkswagen denies Vorst factory closure

13th July 2005, Comments 0 comments

13 July 2005, BRUSSELS — Volkswagen does not plan to close any plants in Europe, company chief Wolfgang Bernhard said, dismissing rumours of the threatened closure of the Vorst factory in Belgium.

13 July 2005

BRUSSELS — Volkswagen does not plan to close any plants in Europe, company chief Wolfgang Bernhard said, dismissing rumours of the threatened closure of the Vorst factory in Belgium.

"We don't have the intention to close factories in Europe. We are going to utilise other possibilities," Bernhard said during an analysts' conference.

Newspaper 'Financial Times Deutschland' reported on Wednesday that Volkswagen intends to save EUR 10 billion in the coming three years.

A source said that figure was "realistic", Belgian news agency 'Belga' reported.
 
The German car manufacturer had previously planned to save EUR 4 billion by 2008, but warned in the meantime that costs had to be reduced even further.

Reports emerged at the start of this week that the Vorst plant was earmarked for closure. The Vorst plant makes the Volkswagen Golf and Audi A3 and employs 5,700 workers.

Analysts have frequently speculated about the plant's closure because wages are higher in Belgium than in Germany.

[Copyright Expatica News 2005]

Subject: Belgian news

0 Comments To This Article