Volkswagen Faces Financial Challenges Amid Union Pushback

Volkswagen is facing significant financial challenges, reporting a 42% drop in third-quarter profits and declining sales, leading to calls for cost-cutting measures. The company is considering closing up to three German plants and implementing a 10% wage cut, moves that have sparked backlash from labor unions like IG Metall, which are demanding a 7% pay increase and job security assurances. Volkswagen's financial struggles are compounded by competitive pressures from inexpensive Chinese electric vehicles and potential EU tariffs on these imports. As part of its restructuring efforts, Volkswagen plans to eliminate bonuses and other incentives while attempting to maintain competitiveness. The automaker is in ongoing negotiations with union representatives, with further talks scheduled. These developments underscore the intense pressure on Volkswagen to adapt amid a volatile automotive market and evolving consumer preferences towards electric vehicles.