Transportation

VW Unveils Cost-Saving Plan That May Keep German Plants Open

  • Measures includes 10% pay cut, changes to bonus system
  • VW brand is struggling with waning demand in Europe, China
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Volkswagen AG laid out cost-savings proposals to workers that would shore up its financial position while potentially avoiding factory closures in Germany.

Arne Meiswinkel, the carmaker’s chief negotiator, said the measures include a 10% pay cut and revised bonus system. The moves are meant to shore up the VW brand that’s struggling with poor demand in Europe and intensifying competition in China.