Volkswagen Faces Labour Unrest Amid Rising Costs and Chinese Competition

Volkswagen, struggling with high costs and competition from China, has rejected union cost-saving proposals aimed at preventing plant closures. IG Metall union's suggestions were deemed insufficient for sustainable savings. As negotiations continue, potential strikes could disrupt Volkswagen's production amid declining demand in Europe.

Volkswagen, grappling with mounting costs and increasing competition from China, dismissed union suggestions for cost-saving measures on Friday, just before planned labor walkouts aimed at avoiding plant closures.

The company declared the proposed savings were not substantial enough for long-term financial relief, stating it would continue discussions with labor representatives. IG Metall, Germany's influential trade union, had suggested cost-saving measures worth 1.5 billion euros, including a bonus suspension for 2025 and 2026.

Amidst these tensions, potential strikes by Volkswagen workers loomed, threatening to disrupt production further as the company struggles with declining demand in the European car market and cheaper Chinese competition.

(With inputs from agencies.)