VW, unions likely to strike deal in small hours or break off till next year, source says

Business and Finance Business and Finance

Wed, December 18, 2024

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VW, unions likely to strike deal in small hours or break off till next year, source says

^{Published on 2024-12-18 03:00:47 - Reuters}

Volkswagen and German unions will most likely either reach a deal in the early hours of Wednesday or adjourn until the new year, a source familiar with discussions said on Tuesday, as the two sides strive to reach a cost-cutting pact before Christmas.

Volkswagen (VW) and its works council are engaging in critical negotiations to finalize cost-cutting measures for 2024, aiming to save 10 billion euros by 2026. These talks, described as a "last ditch" effort, are taking place at VW's headquarters in Wolfsburg, Germany, and involve discussions on reducing personnel costs, which constitute about 40% of VW's total costs. The urgency stems from the need to enhance competitiveness, particularly in the electric vehicle market, where VW has been losing ground to competitors like Tesla and BYD. The negotiations are crucial as they could impact job security and work conditions, with the works council pushing back against any measures that might lead to compulsory redundancies. The outcome of these talks will significantly influence VW's strategic direction and its ability to meet its financial targets.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/vw-unions-resume-last-ditch-round-talks-year-cost-cuts-2024-12-17/ ]

N@N

VW, unions likely to strike deal in small hours or break off till next year, source says