Porsche vows to secure increase in production and employment

Car group to invest in infrastructure and innovation to safeguard future.

Porsche has unveiled a long-term agreement to secure production locations and jobs by creating the prerequisite for continued productivity increases and flexibility, and laying the groundwork for lasting positive corporate development.

These initiatives are in response to the expiration of the new regulations on July 31, 2015, which will supersede current regulations dating back to 2005.

Porsche will make major investments in infrastructure and project innovations in the next five years, and will have separate employee agreements in its German subsidiaries.

The core agreements include job security for the coming five years for the entire staff of Porsche AG; uninterrupted production of the mid-engine sportster Boxster as second mainstay alongside all 911 models in the Porsche factory in Zuffenhausen; and the hiring of 100 trainees or dual college students per fiscal year for technical and sales positions.

Further, through 2015, the company pledges to hire graduates to positions with open-ended employment contracts.

Michael Macht, chairman of the board of Porsche, said: "With this agreement securing production locations, we will be optimally positioned for growth in the coming years.

"This socially balanced compromise guarantees Porsche employees more job security in the future. It also guarantees the company a high degree of flexibility."

Uwe Huck, chairman of the Group Works Council, said: "This arrangement guarantees that in the near future, Zuffenhausen and Weissach will once again run at full capacity.

"With this, the highest level of investment in the history of Porsche, we will secure our economic self-sufficiency and thereby our competitiveness.

"Further we have stipulated additional development capacities and added the Boxster as the second mainstay to Zuffenhausen. Our employment for 2015 is thereby secured."