Thousands of Volkswagen workers in Germany have resumed strikes as unions and management remain locked in negotiations over sweeping cost-cutting measures. The automaker is pushing for €10 billion in savings, proposing pay cuts, job reductions, and potential plant closures to address weak European demand and intense competition in China.

Unions Push Back Against Volkswagen’s Plans

Unions countered with a proposal to save €1.5 billion by reducing bonuses and dividend payouts, but Volkswagen deemed it insufficient. “We need sustainable, short-term cost reductions to stay competitive,” said Volkswagen’s chief negotiator, Arne Meiswinkel.

Union leader Daniela Cavallo called for greater accountability from all parties, including shareholders and management. “We demand everyone make their contribution,” she said at a Wolfsburg rally that drew thousands of workers.

German Chancellor Olaf Scholz weighed in, urging Volkswagen to avoid plant closures and protect jobs.

With further strikes threatened for 2025, the ongoing negotiations are critical for resolving the standoff and determining the automaker’s path forward.