VW union denies agreeing to 6.6bn euro costcut deal

Volkswagen labour leaders said on Wednesday they had not yet struck a deal with management on cost cuts at the core autos division, denying an earlier report by Manager Magazin.

“Constructive talks are still ongoing and will be continued tomorrow. The fact is: the pact may still fail. Especially if the company does not make concrete assurances for certain products, such as battery manufacturing,” Gunnar Kilian, a labour leader at VW’s group works council, said in an e-mailed statement.

Monthly Manager Magazin had earlier said on its website that VW had agreed with labour leaders on cutting costs at the VW brand by between 5 and 6 billion euros (₹37,000 to ₹44,000 crore) by 2025 at the latest.

Europe’s largest automaker will take advantage of natural attrition to cut between 10,000 and 20,000 staff over the next decade, the magazine had said, citing unnamed sources familiar with the talks.

VW didn’t return calls seeking comment. Talks between the two sides on a so-called future pact including cost cuts and a strategy for the brand’s German plants are still ongoing, the magazine said.