Volkswagen labour leaders stand by 'red line' on plant closures
Volkswagen's works council chief reiterated that closing German plants remains a non-negotiable red line in talks with management. While the company pushes for cost cuts, union IG Metall is preparing for strike action. The standoff signals a tense year-end for Europe's auto sector.
Volkswagen's works council chief Daniela Cavallo said closures of German plants remain a 'red line' in negotiations with management. The company is pressing for wage cuts and a restructuring of production, while the union insists on investment guarantees and job protection.
Volkswagen is facing severe cost pressure during its transition to electric vehicles. Competition from Chinese brands and softer European demand are squeezing margins, and the company lowered its profit guidance for a second time last month. Union IG Metall is preparing rolling strikes across plants if talks stall.
The German federal government has kept its distance from the talks, but the state of Lower Saxony remains a major shareholder. A failure to reach agreement could pressure the wider European auto supply chain into the second half of 2026. Investors are watching the share's volatile run over recent weeks.
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