Daimler has guaranteed the jobs of 37,000 workers at its Singelfingen factory in south-west Germany until 2020 and said it will create about 2,000 new posts.

The announcement followedrotests at the plant after Daimler said it was moving production of the Mercedes-Benz C-Class model line to Bremen in the north of the country and output of some market-specific variants to factories in the US, China and South Africa from 2014 to lessen negative foreign exchange effects on profits and indirectly help protect employment at German sites.

Sindelfingen will continue making more expensive E- and S-Class models, along with the SL sport coupes and hybrid motors, Daimler said.

The move "is the best way to conserve sustainable jobs in Germany," Daimler boss Dieter Zetsche said.

The head of Daimler's works committee, Erich Klemm, described the decision to move C-Class production as a poor one but said: "We are happy that jobs have been guaranteed for such a long period."

Daimler produced 398,646 cars at Sindelfingen in 2008.