General Motors Europe and its union have agreed on a plan to reduce working hours at its factories across Europe.
Under the agreement, employees who have their working hours cut will receive a percentage of their full salaries from their local or national governments.
Klaus Franz, chairman of GMs European union, said: It is particularly important that during the time of the agreement the management rules out layoffs and plant closures in all of Europe.
GM has cut its European work force by about a fifth over the past four years. Half of the 12,000 job cuts came at its German unit Opel, which in December 2008 was the first European automaker to seek a government bailout.