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Audi locks up labor deal at Brussels plant

July 23, 2007

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Audi AG reportedly reaches an agreement with labor at an assembly plant in Brussels that will cut costs 20% over three years by adding rising the work week to a total of 38 audi hours, and clear the way for production of the auto maker’s A3 car and upcoming even smaller A1.

The deal also guarantees jobs for 2,200 of the 3,000 workers at the plant through the end of 2010, including provisions for more flexible work hours, employee profit-sharing and a health-care plan designed to prevent illness and injury.

Audi said earlier this year it would increase overall capacity for the A3 model which is now built at its Ingolstadt plant, in Germany, by adding output at the Brussels facility. Production of the A1 model will begin in 2009, and Brussels will become the sole source of A1 output by the end of that year, Audi said in May.

Audi is an automobile maker in Germany, and a wholly-owned subsidiary of the Volkswagen Group. The company is headquartered in Ingolstadt, Bavaria, Germany. The company traces its origins back to 1899 and August Horch. In 1969, Audi merged with NSU, more...