A Volkswagen strike threat has emerged in Germany after union negotiators gave the carmaker until the end of October 2026 to withdraw its termination of wage agreements. Industrial action could begin in January, when a current truce expires.

Key Takeaways

  • IG Metall says Volkswagen is maintaining its termination of the agreements.
  • The carmaker plans to cut 100,000 jobs and could close up to four German plants.
  • Formal negotiations on the canceled agreements are scheduled for November 24 and December 15.

Volkswagen strike threat follows canceled agreements

Volkswagen terminated almost all wage deals with its German workers in September, putting provisions covering working hours and holiday pay up for renegotiation.

After talks in Hanover on October 23, IG Metall said Volkswagen was sticking with the termination. Chief negotiator Thorsten Groeger warned that failing to withdraw it by the end of October would set a process in motion that could lead to industrial action.

Strikes are ruled out before January 1, 2027, under the current truce.

Cost cuts and disagreement over commitments

Volkswagen has said its overhaul targets 20 billion euros ($22.4 billion) in cost cuts along the value chain by 2030, with overhead costs expected to fall by a further 11 billion euros. The company faces Chinese competition, tariff costs and expenses from the shift to electric vehicles.

IG Metall accuses Volkswagen of abandoning commitments made in a late-2024 agreement. Volkswagen executive Arne Meiswinkel said the economic situation had deteriorated dramatically since that agreement, creating an urgent need for action.

The works council said the executive board plans to freeze salaries for 660,000 employees worldwide until 2030. Volkswagen declined to comment on specific cost-cutting and restructuring measures it might pursue in the German wage negotiations.

Negotiations scheduled for November and December

Volkswagen said formal negotiations on the canceled agreements will begin on November 24 at its Emden site and continue on December 15 in Zwickau.

The company said discussions could include transfer companies supported by the federal employment agency to retrain workers and help them find jobs outside Volkswagen.

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