German car manufacturer Volkswagen has announced plans to take on more than 500 temporary agency workers on a permanent basis at one of the firm’s largest national brands in Baunatal in Western Germany.

Despite some automobile companies in Europe axing temporary staff, such as Peugeot and Fiat, VW said that business was doing well and is therefore looking to expand its headcount in Germany.

The firm said it was currently expecting to hire around 570 temporary workers but local media reports that this number could increase by the end of the year. VW is planning a meeting with its work council in December to determine whether some of the 1,500 agency staff at the plant could be hired permanently.

VW pointed out that international demand from countries such as the US and China has helped increase production levels at the branch, although in Europe the firm has seen a slower sales rate with the company selling 20% fewer cars recently.

Only a few weeks ago, rival company BMW agreed to take on 3,000 temporary workers following several lawsuits and nation-wide condemnation of the firm’s “excessive” use of agency staff.

The car manufacturing industry is an important industry for the German staffing market, which will see increased pay rates for temporary workers next month. This follows the introduction of several collective agreements, most notably in the metal and electrical industry.