VW, Union Agree to Cut Capacity and Keep German Plants Open

Volkswagen AG reached an agreement with labor leaders to cut capacity at its namesake brand while avoiding factory closures, capping three months of tense negotiations and preventing further union walkouts.

VW agreed to keep the brand’s 10 German factories operational and reinstate job security agreements until 2030, the works council said Friday, confirming an earlier Bloomberg report. In exchange, workers agreed to forego some bonuses, cut capacity at five sites by several hundred thousand units and reduce the workforce by more than 35,000 over the next five years.