Volkswagen Negotiations With IG Metall To Begin November 24, Audi Factory In US Rumored

The November 24 talks are formal collective bargaining negotiations between Volkswagen Group and IG Metall, the union representing many Volkswagen workers in Germany. They matter because Volkswagen has terminated several wage provisions agreed in 2024 and wants more flexibility to reduce costs.

The two sides are expected to discuss labor costs, working conditions, and measures linked to Volkswagen’s restructuring. The company favors voluntary departures, publicly funded transfer companies, and a smaller workforce. The union wants the company to honor existing commitments and protect employees from bearing the crisis alone.

A second negotiation round is scheduled for December 15 in Zwickau. IG Metall cannot strike before January 1, 2027, but it has threatened industrial action afterward unless Volkswagen withdraws its termination notice by October 31. The talks therefore begin under intense pressure.

IG Metall is a labor union that represents many Volkswagen employees, especially at the company’s main German factories. Collective bargaining is the process in which a union and an employer negotiate shared employment terms, rather than leaving each worker to negotiate alone.

At Volkswagen, those terms include wages, working hours, and holiday pay. The 2024 agreements covered more than 100,000 workers. They also formed part of a broader labor framework that addressed the company’s future and included major job reductions.

These arrangements matter because ending them can weaken protections workers previously won. Volkswagen says cancellation creates room to negotiate necessary changes. IG Metall views the move as reaching into employees’ pockets. The dispute could therefore affect household income, schedules, benefits, and job security across Volkswagen’s German operations.

Volkswagen is planning a sweeping cost-cutting program because it says Germany has more factory capacity than needed and its finances have deteriorated. The company has proposed closing as many as four German factories and reducing its domestic workforce by 50,000 workers.

Globally, Volkswagen plans to eliminate up to 100,000 jobs over four years. It reportedly plans to stop making half of its existing models. The company expects its austerity program to create €20 billion in savings across the value chain by 2030, while reducing overhead costs by €11 billion.

The scale is visible in its profits too. Operating profit fell from €22.6 billion in 2023 to €8.9 billion by 2025. The article says 2026 may produce only half of that. The proposed cuts would affect factories, employees, products, and administrative spending.

If Volkswagen cancels wage provisions, workers may lose negotiated terms covering pay-related benefits, working hours, and holiday pay. A salary freeze would also reduce workers’ earnings in real terms if prices continue rising, although the article does not quantify that effect.

The company’s cost plan could bring layoffs, factory closures, or pressure to accept voluntary departures. Volkswagen is also considering transfer companies, where employees could receive support and qualifications while seeking new work. These measures could soften the immediate impact for some workers, but they do not guarantee equivalent jobs or income.

The works council says management plans to freeze salaries for 660,000 staff worldwide until 2030. IG Metall rejects the approach and threatens industrial action after January 1, 2027. The November and December talks will determine whether compromise is possible.

In September 2024, Volkswagen canceled parts of its collective bargaining framework with IG Metall. That decision triggered a wave of strikes as workers opposed changes to their employment protections and demanded a negotiated solution.

The conflict continued until a landmark labor agreement was reached in December 2024. The deal included 35,000 job cuts. It also contained a provision allowing either side to revisit the agreement if circumstances changed materially.

Volkswagen now argues that its deteriorating finances qualify as such a change. On September 30, 2026, it terminated many wage provisions agreed in December 2024. IG Metall says the company is breaking faith with workers and has demanded a withdrawal. The earlier dispute is a warning that the new confrontation could again escalate, although the union is contractually barred from striking until January 1, 2027.

Voluntary departures let employees leave by choice, often making workforce reductions less abrupt than compulsory dismissals. Volkswagen lists the maximum use of these options as a priority in its restructuring plan.

The company also proposes transfer companies eligible for public funding. Employees could join them temporarily, gain additional qualifications, and explore new prospects in the labor market. This mechanism shifts the focus from immediate termination to supported transition, while potentially reducing Volkswagen’s direct workforce and labor costs.

The approach could give workers more choices and support, but it does not preserve every job. The article also raises concern that public funding could move part of Volkswagen’s financial burden onto German taxpayers. Its success depends on voluntary participation, available training, and realistic opportunities for workers’ next steps.

Automakers have enormous fixed costs, including factories, equipment, workers, and product development. If demand falls or shifts between vehicle types, factories may operate below efficient levels while those costs remain. Excess capacity can therefore reduce profit even when sales volumes still look large.

Tariffs can raise the cost of imported vehicles, parts, or materials, depending on where production and supply chains are located. Changing technology can also require expensive investment and create older models that sell less well. A company may then spend more to update products while earning less from existing factories and vehicles.

The article directly points to excess German capacity, changing conditions in the automotive industry, and a leaner product portfolio. It does not provide specific tariff figures. Together, these pressures help explain Volkswagen’s fall in operating profit from €22.6 billion in 2023 to €8.9 billion in 2025.