VW Starts Talks to Cut Costs, Not Jobs, Amid Auto-Industry Shift
- Unions, management aim to finish negotiations by fall
- ‘We can’t waste time,’ says VW brand chief Herbert Diess
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Volkswagen AG opened talks with unions on how to cut costs without eliminating jobs as the German carmaker grapples with rapid technological change and billions of euros in damages from cheating on diesel-emissions tests.
Negotiations between employee representatives and management are aimed to be completed by this fall so that the results can be incorporated into next year’s plans, Volkswagen said in an statement Tuesday. Negotiations will focus on the core VW brand, which saw profit tumble 86 percent in the first quarter due to the diesel scandal.