An agreement has been reached between automaker Porsche AG and employee representatives saving both jobs and costs, according to Bloomberg News (7/7/00).

The pact, at its Zuffenhausen plant, in Germany, will see Porsche have greater flexibility in assigning workers to jobs and the ability to hire employees on short-term contracts in response to increase demand.

The car manufacturer will also get greater flexibility in setting work hours. In return, the 3,200 employees currently employed at Zuffenhausen are guaranteed work through to July 31st, 2005.

Porsche has also agreed to continue production of the Boxster, the 911 and successor models at the Zuffenhausen plant, where engines for the two models as well as the company`s new Cayenne sport-utility vehicle will be made at the factory.