The Herzogenaurach-based company said in a statement it had agreed with workers’ representatives to a deal that will achieve the savings through means including attrition and the continuation of shorter hours programs.?However, the deal is contingent on the economy improving and demand for cars and car parts picking up, the company said.

Schaeffler, which is family owned, said it expects markets to show more improvement in 2010, but if that is not the case, the company has agreed with the workers’ representatives that more cost savings measures can be undertaken, including job cuts.

The Schweinfurt agreement comes after Schaeffler said earlier this year that it would reduce personnel costs overall in Germany by euro250 million.

The company said Tuesday it intends to reach deals with labor representatives at its other locations quickly. The company also said it forecasts a 16% decline in 2009 revenue to euro7.5 billion from euro8.9 billion in 2008, and that it expects the bearings and car parts market to return to 2008 levels only in 2012 or 2013.

Schaeffler acquired much larger rival car parts and tire maker Continental AG in January, which indebted Schaeffler heavily just as the financial crisis was taking hold of car markets.?Hanover-based Continental said earlier this month that its preliminary pretax profit slid 91% to euro39 million during the second quarter as sales slowed nearly 30% on weaker demand from auto makers.

Continental releases its full earnings report on Thursday, and could provide further details about how it and Schaeffler will be combined in the future.?Shares of Continental were trading up 2.2% at euro26.27 in Frankfurt morning trading. (Tire Review/Akron)