Published by Global Banking & Finance Review®
Posted on November 30, 2024
1 min readLast updated: January 28, 2026
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Volkswagen dismisses IG Metall's €1.5 billion cost savings proposal, citing unsustainable financial relief despite high costs and Chinese competition.
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)
The article discusses Volkswagen's rejection of a union's cost savings proposal amid financial pressures.
The union proposed €1.5 billion in cost savings, including forgoing bonuses for 2025 and 2026.
Volkswagen stated the measures would not provide sustainable financial relief in the coming years.
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