Volkswagen (VWAGY.US) will restart negotiations in an effort to reach an agreement with unions before Christmas.
1min read Intellidsec learned that Volkswagen (VWAGY.US) and unions will resume tense negotiations on Wednesday to slash its German operations, reflecting both sides' Herculean efforts to reach an agreement before Christmas to avoid a massive strike in 2025, after 36 hours of talks starting Monday. Both sides are seeking to end a painful impasse over possible plant closures and mass layoffs that has put Europe's largest carmaker in its biggest crisis in years.
While a deal before Christmas is still possible, the complexity of the negotiations means it cannot be guaranteed, a person familiar with the talks said. Negotiations started in late September.
IG Metall, Germany's biggest union, said it would provide an update on any new developments, adding that it was unclear when that might happen. The union has vowed to oppose any plant closures and mass layoffs. Germany's most powerful union is hoping for a deal this week to give workers peace of mind before Christmas, and has threatened to escalate strikes if no deal is reached.
The two sides have been clashing over cost-cutting measures that VW says are necessary to compete with more flexible, lower-cost Asian rivals, while the company's expected transition to electric vehicles has lost momentum. Both sides are sticking to their red lines, with the union opposing any plant closures and VW not ruling out closures as Europe's market shrinks and excess capacity needs to be cut.
