In high-wage Germany, VW’s labour costs outstrip the competition
On November 20, 2024, Volkswagen and unions are preparing for upcoming discussions regarding wages and potential plant closures in Germany. Recent data analyzed by Reuters reveals that Volkswagen allocates a larger percentage of its sales towards labor costs compared to its major competitors.
The internal memo from Volkswagen’s works council, as reported by Reuters, highlights the ongoing challenge for the automaker to maintain competitiveness in the German market, especially with the influx of more affordable models from China. This issue is further compounded by the broader concerns in Germany surrounding industrial competitiveness, as political leaders are gearing up for an upcoming election focused on revitalizing the country’s weakening industrial sector.
The situation at Volkswagen reflects a larger trend in Germany, where there is a growing emphasis on addressing economic challenges and revitalizing key industries. The upcoming negotiations between Volkswagen and unions will be crucial in determining the company’s future path in the competitive automotive market.
Article Tags:
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Economy & Policy
Regions: Europe
Countries: Germany
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
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