Volkswagen Negotiations

Volkswagen (ETR:VOWG_p) is reportedly nearing a deal with labor leaders after its longest ever negotiation period. This comes as the company aims to implement cost reductions and avoid widespread strikes.

The discussions, which began in September, are in response to competitive pressures from lower-priced Chinese competitors, sluggish demand in Europe, and slower electric vehicle adoption than expected.

Recently, about 100,000 workers participated in two major strikes—the largest in Volkswagen's 87-year history. These strikes were reactions to proposed wage cuts, capacity reductions, and potentially closing German plants for the first time.

Negotiations resumed on Monday in Hanover. Both sides hope to reach an agreement and provide workers with certainty by Christmas, working late into the night with brief breaks.

Sources suggest progress is being made towards a deal, though there remains potential for talks to falter, with one warning, "We can still make a wrong turn on the home stretch."

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