Volkswagen negotiates with unions to secure its future

12/10/2024 08:05 AM

Volkswagen continues negotiating with German unions AG and IG Metall as the automaker tries to secure its future. 

Volkswagen has big plans to secure its future in an ever-changing auto industry. The German automaker is struggling with weak demand for its electric vehicles (EVs) and competing with China's affordable EV imports. VW's main goal right now appears to be to cut costs.

According to German unions, Volkswagen plans to close three factories in Germany, employing about 120,000 people. Recently, VW workers across nine plants in Germany joined the strike against Volkswagen's plans. Meanwhile, Volkswagen executives continue negotiating with AG and IG Metall for a less drastic plan that meets both parties' goals. 

“Today’s discussions were constructive, but we remain significantly apart on a solution. We now need cost reductions that can be implemented in the short term and have a lasting effect. This is how we secure our future," commented Arne Meiswinkel, Volkswagen AG's lead negotiator. 

In a previous negotiation round, the union suggested a financial contribution from employees to reduce costs. VW did not provide details on the financial contributions employees would make. The German automaker rejected the idea, pointing out that financial contributions from employees would not be sufficient to ensure sustainable reductions in cost. 

“We must develop a viable solution that enables us to invest in a sustainable product portfolio well into the 2030s. This will provide security and opportunities for both the company and its workforce," said Mesiwinkel.

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