VW Labor Leaders Offer €1.5 Billion in Cuts Ahead of Talks
- Union says VW targeting about €17 billion in overall savings
- Third round of negotiations scheduled to take place Thursday
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Labor leaders at Volkswagen AG offered €1.5 billion ($1.6 billion) in additional cost cuts as management pushes for broad savings to steady the beleaguered carmaker.
VW’s works council chief Daniela Cavallo on Wednesday called for lowering shareholder dividends and suspending portions of bonuses for workers, executives and board members as part of the proposal. She said management is currently targeting about €17 billion in overall cost reductions, of which labor is a small part.