German luxury car maker Daimler has told 37,000 workers that their jobs are safe until 2020 and that the group will create about 2,000 new ones.

An accord reached with workers' representative’s rules out firings for economic reasons at the Mercedes Benz site in Sindelfingen, south western Germany for the next 10 years.

Earlier this month, Daimler decided to shift production of its new C Class cars to northern Bremen and to plants in the US state of Alabama, China and South Africa from 2014 to lessen negative foreign exchange effects on profits.

Sindelfingen is to continue making more expensive Mercedes' E and S Class models, along with the SL sport coupes and hybrid motors. The move is the best way to conserve sustainable jobs in Germany. The group has been hit by a slump in the market for premium automobiles and drew up a cost cutting plan aimed at saving EUR 4 billion.

(Sourced from AFP)