Volkswagen announced today that it has reached agreement with its workers to cut labor costs for its new Golf-based SUV, the Marrakesh (pictured), by $1,025 per unit, in return for building the vehicle in Germany. The agreement secures about 1,000 German jobs. The company had previously threatened to manufacture the new SUV in Portugal, where labor costs are lower.
This development seems to be a positive step in the labor agreements that are crucial to the success of VW's restructuring plan that aims to boost profits five-fold by 2008.

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