Overview

• Volkswagen AG has initiated talks with unions to address excessive production costs and low profit margins in Germany.
• The company is considering closing several factories and laying off thousands of workers to streamline operations.
• Union leaders have threatened strikes, opposing any plans for mass layoffs and plant closures.
• Volkswagen is grappling with declining sales in China, facing stiff competition from local electric vehicle manufacturers.
• The state of Lower Saxony and employee representatives hold significant influence over VW's decisions, complicating cost-cutting efforts.