Reported 1 day ago
Volkswagen is grappling with escalating labour costs that exceed those of major competitors as it prepares for new wage negotiations in Germany. An internal memo indicates that VW allocates more of its revenue to labour compared to BMW, Mercedes-Benz, and Stellantis, despite a drop in its global labour cost percentage. With unions demanding a 7% pay rise and management proposing a 10% cut, the company is under pressure to reduce fixed costs amid tightening margins from competition, particularly from lower-cost models from China. Labour costs in Germany are currently the highest globally for the passenger car industry, prompting discussions about competitive strategies as the company adjusts to evolving market conditions.
Source: YAHOO