Volkswagen Faces High Costs and Union Tensions Amid Potential German Plant Closures

VW begins critical negotiations with unions over cost-cutting measures, including possible factory shutdowns and layoffs.

Volkswagen AG has initiated talks with unions to address excessive production costs and low profit margins in Germany.
The company is considering closing several factories and laying off thousands of workers to streamline operations.
Union leaders have threatened strikes, opposing any plans for mass layoffs and plant closures.
Volkswagen is grappling with declining sales in China, facing stiff competition from local electric vehicle manufacturers.
The state of Lower Saxony and employee representatives hold significant influence over VW's decisions, complicating cost-cutting efforts.