In a demonstration of unrest, nearly 100,000 Volkswagen employees engages in strikes across Germany, contesting the automaker's proposals for wage reductions and potential site closures.

IG Metall union has warned of escalating industrial action if the company persists with its current plans.

On 2 December, 98,650 Volkswagen employees from nine plants across Germany participated in a series of walkouts as part of ongoing industrial action.

The strikes involved two-hour stoppages by morning shift workers and early walkouts by evening personnel.

The industrial action follows a 22 November decision by labour representatives at Volkswagen to commence limited strikes starting early December, after wage and plant closure negotiations reached a stalemate.

Volkswagen, facing its first potential plant closures in its 87-year history amid financial pressures, has cited the need to cut costs and improve profitability as it grapples with a challenging European automotive environment.

IG Metall's chief negotiator Thorsten Groeger said: "This was the first, powerful impact of a winter of protest, Volkswagen should come to its senses and finally shelve its nightmare plans, otherwise our colleagues will find the right answer."

The union had previously suggested measures to save €1.5bn ($1.58bn), including sacrificing bonuses for 2025 and 2026, but these proposals were rejected by management as insufficient.

In November 2024, Volkswagen CEO Thomas Schaefer announced that the company sees no alternative to layoffs and plant closures as part of its plan to achieve €4bn ($4.16bn) in cost savings.

While unions have been negotiating with the automaker, pushing for solutions that avoid factory closures and major job losses, the CEO emphasised the necessity of these measures.