Volkswagen Ends IG Metall Wage Deals, Union Threatens Strikes From Jan. 1

Volkswagen AG terminated several wage agreements with IG Metall on Wednesday, September 30, 2026, raising the prospect of strikes from January 1, 2027, when the current strike truce expires, as Germany's largest industrial union vowed to escalate its dispute with Europe's biggest automaker. Volkswagen said the terminations take effect December 31, 2026, but the landmark 2024 labor agreement containing job guarantees and promised investment for certain German plants remains unaffected. IG Metall negotiator Thorsten Groeger said the union was "very disappointed" management would not discuss those guarantees. Works council chief Daniela Cavallo said workers received no commitments on threatened plants. Both sides agreed to meet again in late October. The standoff stems from Volkswagen's most radical restructuring, which includes tens of thousands of additional layoffs and the closure of up to four German production sites. The dispute intensifies pressure on German manufacturing as Chinese carmakers expand in Europe; Mercedes-Benz has also threatened two plant closures.