Crisis at Europe's Auto Giant: Volkswagen Plants Could Face Shutdown in January

15:20 - 23.10.2026


October 23, Fineko/abc.az. Labour representatives at Europe's leading automaker, Volkswagen, have threatened to launch widespread strikes starting January 1 unless the company reverses its decision to cancel long-standing collective wage agreements by the end of October.

Thorsten Groeger, chief negotiator for the IG Metall trade union, stated that unions are preparing for full-scale industrial action. IG Metall is demanding the reinstatement of cancelled wage agreements alongside a 5% wage increase for workers. A mandatory peace clause preventing union strikes is set to expire on December 31, 2026, clearing the path for walkouts at the start of the new year.

The confrontation escalates as Volkswagen management pushes forward with aggressive cost-cutting measures—including potential German plant closures—to offset falling profit margins and intensifying competition from Chinese EV manufacturers.