Tensions Escalate as Volkswagen Rejects Union’s Cost-Saving Measures

Volkswagen has dismissed union proposals aimed at achieving cost savings, escalating a labor dispute just days ahead of planned strikes across Germany. Facing mounting pressure from high production costs and competition from China, the automaker has argued for a 10% wage reduction, claiming it is essential to slash expenses and maintain market share amid declining car demand in Europe.

The unions have pushed back, proposing alternative measures, but Volkswagen rejected the suggestions, citing their lack of long-term financial impact. The automaker has also hinted at the possibility of unprecedented plant closures in Germany—a stark move in its 87-year history. Workers are now poised to strike in December, raising the stakes in this labor standoff as both sides grapple over the company’s future direction.