HANOVER: Volkswagen management and labour representatives negotiated late into the night on Monday in a last-ditch round of talks on cost cuts before Christmas, with unions saying it remained far from clear whether compromise would be reached.

Talks ended after around 13 hours of negotiation in the early hours yesterday without a deal but would resume mid-morning, a spokesperson for IG Metall union said. The sides were far apart on key points, with unions adamant that any solution must exclude plant closures and the carmaker insisting it cannot rule them out.

“It was far from clear late on Monday evening whether rapprochement or a stalemate were a realistic outcome of the talks on Tuesday,” the IG Metall union said in a statement published to its website.

Unions have threatened unprecedented strike action in the new year if a compromise is not found in this week’s talks, which both sides have said could last several days.

“Workers don’t want to go into Christmas in fear,” she told union members outside the hotel before talks began early on Monday, the fifth round since early September.

Europe’s biggest carmakers are being squeezed by high costs and the arrival of cheaper Chinese competitors which are taking the battle for market share to their home turf. — Reuters