Berlin  - A major German car parts maker, Schaeffler, said Tuesday it was putting 20,000 workers on short time because of a dramatic fall-off in orders.

The company, which recently acquired German tyre maker Continental AG in a controversial takeover, said nearly two-thirds of its total workforce would be affected by the move.

The Schaeffler Group employees about 31,000 workers at 25 plants in Germany where the car industry has been particularly hard-hit by the global economic crisis.

Figures released Tuesday showed sales tumbling by 14 per cent in January compared to a year ago, with an even steeper 39 per cent decline in German car exports to
222,700 vehicles.

Schaeffler spokesman Detlef Sieverdingbeck said short-time working would last for about six months, with employees working on average four days per week instead of five.

The announcement comes less than a week after Chancellor Angela Merkel's government confirmed it was in talks with Continental and Schaeffler over possible state aid.

The two companies have a combined debt of about 22 billion euros (29 billion dollars), following the takeover which saw the privately owned Schaeffler gaining
49.9-per-cent voting rights in the larger Continental.

Since Schaeffler made the acquisition, the car industry has been plunged into a crisis as global sales have slumped in the wake of the world economic slowdown, which has made it difficult for the two companies to meet their interest-rate payments.

In the meantime, Schaeffler, which is owned by billionaire Maria- Elisabeth Schaeffler and her son Georg, is hoping to secure credit and state-based guarantees to ease its debt problems. dpa