Volkswagen Terminates Long-Standing Job Protection Deal in Major Cost-Cutting Move

The German automaker faces steep costs, fierce competition, and economic hurdles as it aims to secure future competitiveness.

Volkswagen ends a 30-year job protection deal as part of a larger cost-saving effort.
The automaker faces high production costs, a demanding transition to electric vehicles, and strong competition from Chinese firms.
Negotiations with unions are expected to be contentious, with worker representatives vowing to resist layoffs.
VW's struggles reflect broader economic challenges in Germany, including supply chain disruptions and energy crises.
The decision has intensified concerns over Germany's industrial future amidst a stagnating economy.