In high-wage Germany, VW’s labour costs outstrip the competition

As Volkswagen and unions gear up for the next round of talks over wages and plant closures in Germany, company and industry data reviewed by Reuters show that the automaker spends a higher proportion of sales on labour costs than major rivals. 

Why it matters 

The data, in an internal memo by Volkswagen’s works council reviewed by Reuters, underscores the company’s challenge to remain competitive in its pricey home market as cheaper models from China arrive. 

Volkswagen’s troubles also come amid broader anxiety in Germany over competitiveness, as politicians gear up for an election battle in February over how to revive a weakening industrial base.