Volkswagen Mulls Job Cuts Despite Profits Surge

14 February 2006

    WOLFSBURG - The German auto giant reported a 61% surge in net income in 2005, but warned that up to 20,000 jobs risk elimination as the company undertakes a broad restructuring of its high-wage domestic plants.
    Volkswagen's net income rose to €1.12 billion ($1.34bn; £764.9m) in 2005, compared with €697 million in 2004, thanks to stronger sales in Western Europe and the effects of a wide-ranging cost-cutting program
    It is VW's first annual profit increase since 2001. Revenue rose 7.1%, to €95.3 billion. Vehicle sales increased 3.2% in 2005, to 5.24 million.
    Detailed earnings will be reported in March.