Volkswagen on Brink of Historic Labour Deal amidst Strikes

Volkswagen is nearing a deal with labour leaders after extensive negotiations over pay and jobs. The company is pushing for cost cuts amid competition from Chinese automakers and slow electric vehicle adoption. Previous worker strikes and potential plant closures have escalated tensions, with a resolution sought by Christmas.

Volkswagen's negotiation marathon with labour representatives is edging towards a conclusion, insiders informed Reuters on Friday. As Europe's leading car manufacturer, Volkswagen is striving to enforce cost reductions and avert massive strikes.

The need to stay competitive against affordable Chinese rivals, weak demand in Europe, and sluggish electric vehicle adoption are driving these necessary measures, the company argues. With about 100,000 employees already mobilizing two substantial strikes in protest, the stakes are high.

Currently in its fifth negotiation round, both sides are racing against the clock to deliver worker security by Christmas, highlighting the tensions amidst sensitive political climates and the search for savings to navigate weakening European auto markets.

(With inputs from agencies.)