STORY: :: File

Volkswagen has reached a deal with unions that will see sweeping changes to its German operations, including sharp reductions in capacity and more than 35,000 future job cuts.

:: December 20, 2024

Union leaders hailed the agreement as a “Christmas miracle” after 70 hours of grueling talks – the longest in VW’s 87-year history.

Here’s union IG-Metall negotiator, Thorsten Groeger.

“We are pleased that we have put together a package in which the red lines have been adhered to,” he said.

There won’t be any immediate site closures or layoffs at Volkswagen.

:: File

And the company appears to have backed away from demanding 10% wage cuts.

Europe’s biggest carmaker has been in negotiations over pay and jobs since September.

It had said cost-cutting measures were necessary to compete with Chinese rivals, handle lackluster demand in Europe and slower-than-expected adoption of electric vehicles.

:: December 9, 2024

The deal avoids costly strikes and may also provide relief to investors.

Around 100,000 workers had already staged two separate strikes in the past month.

Protesting against plans to cut wages, reduce capacity and potentially shut German plants for the first time.

VW said the union deal would allow savings of $15.6 billion annually in the medium term, and saw no significant impact on its 2024 guidance.