Intense negotiations between Volkswagen and German unions over proposed cuts to the automaker’s operations are set to resume on Wednesday after a brief pause, as both sides race to reach a deal before Christmas and prevent major strikes in 2025.
The talks, which resumed after 36 hours of discussions starting on Monday, have been centered around potential factory closures and mass layoffs that have escalated tensions within the company, Europe’s top carmaker, amid its biggest crisis in years. A source close to the negotiations indicated that while an agreement before Christmas is still possible, the complexity of the talks—dating back to late September—means a deal is not guaranteed.
IG Metall, Germany’s influential trade union, which has been adamant in opposing any plant closures and layoffs, stated it would provide updates as new developments arise, though it remains unclear when those updates might occur.
The crux of the dispute lies in Volkswagen’s push for cost reductions to remain competitive against faster and cheaper Asian rivals, particularly as the transition to electric vehicles stalls. Both sides have remained firm in their positions: unions are steadfastly against plant closures, while Volkswagen has not ruled them out, citing a shrinking European market and the need to address overcapacity.
IG Metall is aiming for an agreement by week’s end to provide workers with certainty before the holiday season, but has warned it could escalate strikes if no deal is reached by the new year.
