Volkswagen brushes off union's cost savings proposals

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November 29, 2024 10:33 AM EST

FILE PHOTO: Volkswagen workers from factories across Germany gather in front of the Volkswagen Arena, ahead of talks between unions and management on wage cuts in Wolfsburg, Germany, November 21, 2024. REUTERS/Victoria Waldersee/File Photo

BERLIN (Reuters) - Volkswagen, under pressure by high costs and Chinese competition, brushed off union proposals for cost savings on Friday, just days ahead of planned walkouts meant to avoid unprecedented plant closures.

"Although there may also be positive effects in the short term, the measures will not lead to any sustainable financial relief for the company in the coming years", the company said in a statement, adding it would remain in contact with labour representatives.

Germany's powerful IG Metall union this month proposed 1.5 billion euros ($1.6 billion) in cost savings, including forgoing bonuses for 2025 and 2026.

"Sustainable savings of 1.5 billion euros cannot be ascertained even after intensive analysis", the company said on Friday.

($1 = 0.9468 euros)

(Reporting by Christina Amann and Thomas Seythal; Editing by Miranda Murray)


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