Volkswagen scraps plans to close German factories

Volkswagen has reversed its plans to close German factories, responding to union pressure and reaching a wage agreement that prevents redundancies until 2030. The deal allows for the socially responsible shedding of over 35,000 jobs, and aims for wage savings exceeding €15bn. Thorsten Groeger, negotiator for the IG Metall union, said that employees made “painful concessions,” including the loss of bonuses, but monthly wages remain intact. Union leaders hailed the agreement as a “Christmas miracle” following 70 hours of negotiations, the longest in the car maker’s 87-year history. “With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures,” Volkswagen Group CEO Oliver Blume said, adding “We are now back in a position to successfully shape our own destiny.”