VW dismisses union’s cost savings proposals, Reuters reports

Amid pressure from high costs and competition from China, Volkswagen (VWAGY) has spurned union proposals for cost savings just days ahead of planned walkouts meant to avoid unprecedented factory closures, Reuters’ Christina Amann and Thomas Seythal reports. “Although there may also be positive effects in the short term, the measures will not lead to any sustainable financial relief for the company in the coming years”, the company, adding it would continue to be in contact with labor representatives. Earlier this month, Germany’s IG Metall union proposed EUR 1.5B in cost savings, including forgoing bonuses for the next two years, the authors note. “Sustainable savings of EUR1.5B cannot be ascertained even after intensive analysis”, the company said.