Volkswagen Faces Labor Dispute and Cost Cuts

Volkswagen is facing intense labor negotiations as over 100,000 employees staged strikes demanding job security amid proposed wage cuts and potential plant closures. The discussions, which have entered a critical phase, ended without a deal after 13 hours, with both sides remaining far apart on key issues, including the company's insistence on the possibility of layoffs. The automaker's stock has plummeted to €85.70, significantly below its 52-week high, reflecting market uncertainties and ongoing labor disputes. With the potential for expanded strike actions looming, analysts maintain a cautiously optimistic outlook, projecting a price target of €110.20 for Volkswagen's shares. The deadlock in negotiations is also jeopardizing Volkswagen's long-term investment strategy, prompting concerns over significant financial write-downs. As the situation develops, both the company and the IG Metall union are under pressure to reach a resolution before additional strikes are called in January.