Volkswagen Close to Agreement with Labor Leaders - Reuters

Investing.com -- Volkswagen is nearing an agreement with labor leaders after the longest negotiation period to implement the company's cost-cutting efforts and avoid widespread strikes. According to a report released by Reuters on Friday, the ongoing talks, which began in September, are in response to the need for competitive measures against lower-priced rivals from China, sluggish demand in Europe, and a slower-than-expected pace of electric vehicle adoption.

In the past month, approximately 100,000 workers participated in two separate strikes, marking the largest strike in Volkswagen's 87-year history. The strikes were a reaction to plans for wage cuts, capacity reductions, and potentially the closure of German factories for the first time.

The fifth round of negotiations, which began on Monday, is taking place at a hotel in Hannover. Both sides have expressed their intention to reach an agreement and provide workers with some certainty by Christmas. Negotiators are working late into the night, taking only short breaks for rest and meals.

Sources close to the negotiations noted progress towards an agreement. However, one source emphasized that the talks still have the potential to fail, stating, "We could still make a wrong turn at the last bend."