Before the announcement regarding the strikes, Volkswagen proposed freezing wages at their current level, amid declining sales and a restructuring program considered the most extensive in the group’s history. Management did not confirm reports appearing in the press about effects on income, but indicated that the next round of negotiations would discuss measures concerning personnel costs; according to cited internal documents, the lack of pay increases could reduce real incomes by approximately 10%, and bonuses, special payments, and certain benefits would also be affected.
Against the backdrop of financial pressures, the company also announced restructuring measures in Germany, while tens of thousands of employees protested at plants, demanding the protection of jobs. The CEO said that the measures agreed in 2024 were not sufficient, while trade unions called for protection against Chinese competition and more effective European policies.
The company’s estimates regarding profitability deteriorated rapidly: Volkswagen reduced its profit margin forecast for 2026 to no more than 1% and warned of exceptional costs of up to 10 billion euros, citing problems related to Porsche, declining demand in China, and pressures in the electric vehicle sector.
