In the ongoing dispute over potential layoffs and plant closures at Volkswagen, the carmaker and the union IG Metall are sitting down at the negotiation table. Both parties will move up the collective bargaining round originally planned for October to September 25 in Hanover to discuss both the regular wage increase and the employment security that VW has revoked.

The background of this development is Volkswagen's announcement in early September to intensify cost-saving measures due to the difficult market situation. The company no longer rules out layoffs and plant closures. Particularly at risk are the job guarantee in place since 1994, the employment guarantee for trainees, and the pay of temporary workers. According to Volkswagen, if no agreement is reached by mid-2025, layoffs are imminent.

The IG Metall showed itself ready to fight. Thorsten Gröger, district manager of IG Metall Lower Saxony, declared: "There will be no plant closures and mass layoffs with us." Works council chairwoman Daniela Cavallo also made it clear in recent weeks that the works council rejects layoffs due to operational reasons and plant closures.

Additionally, the situation is further complicated by demands from the automotive industry to reconsider the EU's CO2 fleet targets. VW Supervisory Board Chairman Hans Dieter Pötsch called for an adjustment of the CO2 targets to better reflect reality, as the demand for electric cars in Europe is falling short of expectations. Other industry leaders, such as BMW CEO Oliver Zipse, have also made similar demands.

The VW share was able to gain slightly by 0.7 percent on Thursday and closed at 89.82 euros in XETRA trading.