VW workers threaten 2025 strike escalation

Volkswagen's workers have warned that unprecedented industrial action could come in 2025.

VW staff downed tools at nine German sites, while thousands marched in Wolfsburg, where the carmaker is headquartered.

The latest negotiations, which initially kicked off in September, come as Europe's largest carmaker seeks ways to radically cut costs.

German Chancellor Olaf Scholz, trailing in polls ahead of a snap election, has warned VW against factory closures.

Workers are staging four-hour strikes, the second walkouts in a week.

Workers can crank up the pressure on VW by eventually staging 24-hour strikes and even open-ended ones.

Volkswagen's stock is one of the worst performers among European carmakers and has fallen by nearly 25% this year.

An estimated 68,000 workers participated in strikes at nine German sites, marking the largest industrial action in VW's recent history. In Wolfsburg, the company's headquarters, thousands of employees marched with flags and whistles, demonstrating against potential plant closures and cost-cutting measures.

While VW's chief negotiator Arne Meiswinkel confirmed the significant gap between positions, union representative Thorsten Groeger noted a "constructive climate" in talks for the first time, with negotiations set to resume on December 16.

The dispute centers on Volkswagen's push to reduce costs and address overcapacity in Germany, as the company faces increasing competition from Asian rivals, particularly in the electric vehicle market. The crisis coincides with broader economic uncertainty in Germany, prompting Chancellor Olaf Scholz to warn against factory closures.

The strikes have already surpassed the scale of 2018's industrial action, when 50,000 workers participated in warning strikes across six sites. Union officials note that there have never been full 24-hour or open-ended strikes in VW's history, though these remain possible escalation options.