FRANKFURT -- German luxury carmaker Porsche will invest more than 600 million euros ($724 million) in three locations in the next five years as part of a labor pact with its staff.
Under the deal, Porsche will guarantee jobs for the staff of about 8,300 employees until the end of its fiscal year in July 2010, the company said on Friday.
A key prerequisite for the pact was staff willingness to work more flexibly and improve productivity in the future, Porsche said.
"This agreement gives us the security that we can increase our productivity by at least 6 percent annually through 2010," Chief Executive Wendelin Wiedeking said in a statement.
The deal applies to the 4,800 workers in its main Zuffenhausen plant outside Stuttgart, as well as the 700 employed in Ludwigsburg and a further 2,800 at its design and development center in Weissach.
In order to build significantly more cars in Zuffenhausen in the future with the same head count, Porsche will invest in order to expand the assembly lines.
In Weissach, the group would invest more than 250 million euros in the coming five years, in particular for new testing facilities as well as new plants and machinery.