Volkswagen and IG Metall to open cost-cutting talks on November 24

· Automotive & EV · Germany

Volkswagen Group and union IG Metall will begin negotiations on November 24, as the company pushes to cut costs amid a sharp earnings decline. Operating profit was €22.6 billion in 2023 but had been slashed to €8.9 billion by 2025, and 2026 may be half of that. The group holds more factory capacity in Germany than it needs in the current market. The talks set up a confrontation over jobs and plant utilization at the group's German operations.

Why it matters：Europe's largest automaker negotiating job and capacity cuts with its union is a test case for how legacy manufacturers restructure under EV competition and weak margins.

Key points

  • Talks begin November 24
  • Operating profit fell from €22.6 billion in 2023 to €8.9 billion by 2025
  • The group has more German factory capacity than it needs

Sources (original reporting)

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