Auto Disinvestment Not Just in USA

Volkswagen May Cut 20,000 Jobs as Net Almost Doubles (Update4)

Feb. 10 (Bloomberg) -- Volkswagen AG, Europe's largest carmaker, may eliminate as many as 20,000 jobs, extending a cost-cutting program that helped profit jump last quarter. The shares rose the most in three years.

Some workers may be offered jobs at other plants under the three-year reorganization plan, the Wolfsburg, Germany-based company said today. Net income climbed to 435 million euros ($521 million) in the fourth quarter, from 234 million euros a year earlier, based on the company's annual profit report today.

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"Cost cutting" means disinvestment and cutting capacity to make product in the future. Here, VW has doubled its net, but proposes to dump 5.8% of its people, and presumably 5.8% of its future gross output.