Hannover, Germany:
Volkswagen announced major changes to its German operations on Friday, including more than 35,000 future job cuts and a last-gasp deal between Europe’s top automakers and unions to avert mass strikes. Includes rapid decline in capacity.
Union leaders called the deal a “Christmas miracle” after 70 hours of intense negotiations, the longest in the company’s 87-year history. There will be no immediate site closures or layoffs, and VW appears to have backed down on demands for a 10 percent wage cut.
A deal that avoids costly strikes could also provide relief to investors after months of negotiations. Shares rose 2.4 percent in extended trading after the deal. This year they have decreased by 23%. Volkswagen has been in talks with union representatives since September about measures it would need to compete with cheaper Chinese rivals and to cope with lower demand in Europe and slower-than-expected adoption of electric vehicles. are