Volkswagen Nearing Critical Labor Agreement Amid Historic Strikes

Volkswagen is in final negotiations with labor leaders to resolve Europe's longest strike over pay and job security. The talks aim to avoid plant closures and mass job cuts amid competition from China and slow EV adoption. Effects could ripple across Germany's automotive sector.

Volkswagen is closing in on a crucial labor agreement in what has become the company's longest-ever negotiation over wages and job security, sources told Reuters on Friday.

The discussions target cost-cutting measures to keep European factories open and avert mass strikes as Europe's largest carmaker faces competition from cheaper Chinese rivals and slower-than-anticipated adoption of electric vehicles.

Despite 100,000 workers staging two major strikes in recent months, labor leaders and Volkswagen management are optimistic about reaching a deal by Christmas. Yet, there is no consensus over potential plant closures, which might impact VW's target of 4 billion euros in savings.

(With inputs from agencies.)