The IG Metall union proposed $1.6 billion in savings, including forgoing bonuses through 2026. VW is demanding 10% wage cuts and threatening factory closures for the first time. Negotiations between VW and IG Metall are scheduled to resume on December 9.

Volkswagen AG Chief Executive Officer Oliver Blume told workers that current union proposals to cut costs offer a starting point for negotiations but don’t go far enough to address flagging competitiveness at the carmaker’s namesake brand.

The head of  Volkswagen’s works council Daniela Cavallo has made it clear that the IG Metall union and the works council do not want to fight but “let off steam”.