GERMANY: Parts maker INA mulls production transfer to low-cost countries

The German News Digest reports that German car parts maker INA Schaeffler KG is considering the transfer of production from Germany to low-wage countries, if it fails to decrease its costs by 10%.

bcusack October 4, 2004

The German News Digest reports that German car parts maker INA Schaeffler KG is considering the transfer of production from Germany to low-wage countries, if it fails to decrease its costs by 10%.

INA has already negotiated with German trade union for the metal, engineering, coal and steel industries, IG Metall, for the possibility of an extension of the weekly working hours by three hours, without any wage adjustments. However, both parties failed to agree, the report said.

INA’s announcement follows the plans of its German ball bearings and car components producing unit, FAG Kugelfischer Georg Schafer AG, to shed 1,000 jobs in Germany.