VW and works council reach provisional deal, Handelsblatt reports

(Reuters) – Volkswagen (ETR:VOWG_p) and its works council reached a provisional deal on cost-cutting measures that still requires further scrutiny and agreement from both sides, Handelsblatt reported on Friday, citing people familiar with the proceedings.

The agreement would meet the company’s target to save billions of euros and make less drastic cuts to factories than expected, Handelsblatt said.

According to the report, a buyer would be sought for the Osnabrueck plant and the Dresden plant would be repurposed or closed. Closure of the factories in Zwickau or Emden would therefore be off the table, it said.

Volkswagen was not immediately available to comment.