Volkswagen Demands Wage Cuts

Volkswagen is in trouble. The automaker is facing its lowest earnings in three years, and it’s asking employees to take a 10% pay cut to save jobs and stay competitive.

The German automaker has been weighed down by weak sales in China and high operating costs in Germany, sparking talks of possible plant closures for the first time in its 87-year history. Workers are pushing back, demanding a 7% pay rise and assurances that no plants will shut down, with strikes looming in December if negotiations stall.

The company is also grappling with competition from cheaper models by Tesla and Chinese brands, which have cut into its market share across Europe and China.

To regain its footing, Volkswagen plans a $10.8 billion cost-cutting drive, with improvements in software and driving assistance as part of its comeback strategy in China by 2026.

With the German government pressing for solutions to keep jobs safe, Volkswagen now faces urgent pressure to cut costs and regain efficiency to protect its future.