BERLIN (Reuters) – Volkswagen, under pressure from high costs and Chinese competition, rejected union proposals for cost savings just days before planned walkouts to avoid unprecedented plant closures.
Although union IG Metall proposed 1.5 billion euros ($1.6 billion) in cost savings, including forgoing bonuses for 2025 and 2026, Volkswagen stated that sustainable savings of 1.5 billion euros cannot be ascertained even after intensive analysis. The company said that although there may be positive effects in the short term, the measures would not lead to any sustainable financial relief for the company in the coming years.
Volkswagen added that it would remain in contact with labor representatives to discuss alternative proposals for cost savings.
