Investing.com — Volkswagen (ETR:) is reportedly nearing a deal with labor leaders following its longest ever negotiation period, as the company seeks to implement cost reductions and avoid widespread strikes, according to a Reuters report on Friday. The ongoing discussions, which began in September, are a response to the need for competitive measures against lower-priced competitors from China, sluggish demand in Europe, and a slower pace of electric vehicle adoption than anticipated.
Over the past month, approximately 100,000 workers have taken part in two separate strikes, marking the largest in Volkswagen’s 87-year history. The strikes were a response to proposed plans to cut wages, decrease capacity, and potentially close German plants for the first time.
The fifth round of negotiations, which started on Monday, has been taking place at a hotel in Hanover. Both sides have expressed their intention to reach an agreement and provide some certainty to workers by Christmas, with negotiators working long hours into the night with only brief intervals for rest and refreshment.
Sources familiar with the negotiations have indicated that progress is being made towards a deal. However, one source warned that there is still potential for the talks to falter, stating, “We can still make a wrong turn on the home stretch.”
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