Volkswagen is to cut up to 20,000 jobs as part of restructuring plans set to run until 2009, according to Friday afternoon reports.

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The BBC said company was expected to make the cuts at its core Volkswagen vehicle business.


“In the next three years up to 20,000 direct and indirect employees within the Volkswagen passenger car brand could be affected by this restructuring programme,” the company told the broadcaster.


VW, which had threatened to switch production to Portugal, reportedly said that during the latest round of restructuring it would consider adjusting production capacity at its factories.


Chief executive Bern Pischetsrieder looked to ease concerns by reassuring unions that Volkswagen would not renege on previous agreements, the BBC noted.

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“We have a collective agreement and it is not our intention to quit that agreement,” Pischetsrieder reportedly said.


The BBC added that VW also announced a preliminary net profit of EUR1.1bn (GBP752m) for 2005, topping analyst estimates.


Sales totalled 95.3bn euros in 2005 and VW reportedly added it was optimistic about its outlook for 2006, forecasting an increase in sales and operating profit.