High-Stakes Talks at Volkswagen

BERLIN (Reuters) – Volkswagen management and labor representatives will resume high-pressure talks on Tuesday over planned cost cuts affecting the carmaker's German sites. A 13-hour negotiation round on Monday failed to yield an agreement.

Unions expressed concerns late Monday night, stating it was still "far from clear" whether Tuesday's discussions would bridge the gap between both sides or result in a stalemate. Union representatives emphasized that any resolution must dismiss the possibility of plant closures, while Volkswagen has indicated that it cannot exclude this option.

Initially, both parties anticipated that negotiations would extend several days, striving to reach an agreement before Christmas and avert a conflict that has strained the previously cordial relationship between works council chief Daniela Cavallo and Chief Executive Oliver Blume into the next year.

Unions have warned of unprecedented strike action in the new year should a deal not be made this week.

"Workers don't want to go into Christmas in fear," stated works council chief Daniela Cavallo to union members outside the hotel before the talks commenced on Monday, marking the fifth negotiation session since early September.