German Auto Union Hints at Escalation as Cost Cut Pressure Grows

Germany’s powerful autoworker union warned it would step up pressure on companies such as Volkswagen AG and Mercedes-Benz Group AG if they continue pushing aggressive cost cuts and shifting production abroad.

The country’s largest labor union, IG Metall, is heading into wage negotiations in the metal and electrical engineering industry later this year, with crunch talks expected in the fall. The two sides will face off as carmakers and their suppliers grapple with intensifying competition in and from China, the impact of US tariffs and slower-than-expected uptake of electric vehicles.