Thousands of Volkswagen workers begin to strike across Germany

Thousands of Volkswagen (VW) workers across Germany launched strikes Monday, temporarily stopping production at nine factories as tensions escalate over the automaker’s proposals to slash costs.

Driving the news: IG Metall, Germany's largest industrial union, organized the walkouts. They oppose VW's plan for 10% pay cuts, layoffs, and closing three factories.

• The strikes are short and targeted stoppages that serve as a warning shot ahead of possible longer walkouts if talks fail to deliver progress.

• VW workers are also demanding a 7% pay raise, which is at odds with the company’s push to tighten its belt.

The backdrop: Volkswagen is wrestling with a dramatically smaller European car market while facing rising competition from Chinese automakers like BYD. The company also says its German operations are significantly more expensive than its factories in Eastern Europe and South America.

• European vehicle demand has dropped to 14 million units annually, down from 16 million.

• For decades, profits from China propped up the company’s German operations, but slowing sales there have forced VW to reassess.

What they're saying: IG Metall and Volkswagen’s works council argue the automaker is unfairly asking workers to shoulder the burden of management’s failure to adapt to market changes — especially the shift toward affordable EVs.

• “Those who ignore the workforce are playing with fire — and we know how to turn sparks into flames,” said Thorsten Gröger, IG Metall’s regional leader. The union has warned this could become one of Volkswagen’s fiercest labor disputes.

• Daniela Cavallo, head of the works council, doubled down, calling closures and layoffs “red lines” and urging the company to work with — not against — its workforce.

• A VW spokesperson said the company “respects the right of workers to participate in a warning strike.”

What's next: The Dec. 9 negotiations will likely set the tone for the months ahead. A breakthrough could stabilize production and offer a pathway for Volkswagen to recalibrate its German operations. But if talks fail, prolonged strikes and deepening divides could seriously hinder VW’s ability to navigate the road ahead.

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