The American car manufacturer, General Motors, has announced plans to cut its European workforce by up to 30%.

This could mean the loss of some 20,000 jobs over the next five years.

They will be mainly voluntary redundancies, with Germany expected to bear the brunt of the cuts.

In an inverview with Britain's Financial Times newspaper, GM chairman Jack Smith said the company had "some more work to do in Germany" in terms of improving productivity and profits.

He declined to be specific about the measures but said they would be put into effect "in the coming months."

The company is expected to review its business with Britain because the strength of the pound has been making British-made parts more costly.

General Motors says the action is necessary because of increasing competition in Europe along with deteriorating profits from its European operations.

The company says it is keen to expand into the growing markets of Eastern Europe.

The fall in the value of the yen and South Korean won is expected to intensify competition in the US and Europe.
 

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