VW: German 'cash-for-clunkers' scheme supported 5,800 jobs

24th June 2009, Comments 0 comments

Demand boosted by a government bonus for those who turned in an old car and bought a new one forced VW to bring in extra staff in April and run assembly lines over weekends in May and June.

Frankfurt -- Germany's popular car scrapping premium has allowed Europe's biggest carmaker, Volkswagen, to retain thousands of workers, a VW statement said on Tuesday.

Around 5,800 workers were kept on, of which 3,300 were in Germany, personnel director Horst Neumann was quoted as saying.

Demand boosted by a 2,500-euro (3,500-dollar) government bonus for those who turned in an old car and bought a new one forced VW to bring in extra staff in April and run assembly lines over weekends in May and June, the company said.

A few months ago, VW and competitors resorted to partial lay-offs as global automobile markets collapsed owing to the economic downturn.

Since the beginning of the year however, VW has limited the drop in its sales worldwide to seven percent, compared with a sector average of 20 percent, Meumann said.

AFP/Expatica

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