In high-wage Germany, VW’s labour prices outstrip the competitors

20 November 2024, 11:48 am 1 minute

As Volkswagen and unions gear up for the subsequent spherical of talks over wages and plant closures in Germany, firm and trade knowledge reviewed by Reuters present that the automaker spends a better proportion of gross sales on labour prices than main rivals. 

Why it issues 

The info, in an inside memo by Volkswagen’s works council reviewed by Reuters, underscores the corporate’s problem to stay aggressive in its expensive house market as cheaper fashions from China arrive. 

Volkswagen’s troubles additionally come amid broader anxiousness in Germany over competitiveness, as politicians gear up for an election battle in February over the way to revive a weakening industrial base. 

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