VW rejects union cost-cutting proposals

Volkswagen workers could go out on strike across Germany as soon as next week

The car-maker has been struggling to rein in costs, demanding a 10% wage cut from workers. Picture: AP /Jens Meyer

Under pressure from high costs and Chinese competition, German car giant Volkswagen rejected union proposals for cost savings on Friday, just days ahead of planned walkouts meant to avoid unprecedented plant closures.

"Although there may also be positive effects in the short term, the measures will not lead to any sustainable financial relief for the company in the coming years," the company said in a statement, adding it would remain in contact with labour representatives.