DaimlerChrysler said on Monday it may cut 6,000 jobs and shift some production of the new C-class models outside of Germany if its works council opposes deeper cost cuts, according to Reuters.

Until now, the firm reportedly said, employee representatives have agreed to just €180 million ($US223 million) in annual personnel cost cuts despite demands from management to save €500 million.

Guenter Fleig, Daimler’s management board member responsible for personnel, told Reuters the possible job cuts would be at the company’s Sindelfingen plant near Stuttgart.

The company reportedly wants to move production of the C-class, due in 2007, to its more efficient Bremen plant in northern Germany and to its East London factory in South Africa and wants to drop plans to build derivative models.

Citing the works council, Reuters said the company on Saturday suffered a production loss of more than 1,000 vehicles after some 12,000 workers in Sindelfingen failed to show up for their shift to protest the cost-cutting plans.

The works council plans further demonstrations on Thursday in all of Daimler’s German factories, Reuters added.