Volkswagen is facing a significant standoff with IG Metall, Germany's largest trade union, over proposed cost-cutting measures.
The union has threatened unprecedented industrial action if VW proceeds with plans to close factories and cut wages by 10%.
In response, IG Metall has proposed a "Future Fund" to address capacity issues without resorting to layoffs.
This fund would redirect wage increases into investments for future products.
VW, however, remains cautious, emphasizing the need for financial evaluation of these proposals.
The ongoing negotiations are crucial as VW aims to improve its profit margins amidst declining performance in key markets like China.
The next round of talks is set for Thursday, with both sides under pressure to reach a resolution before the year's end.
