BERLIN -- Volkswagen labor leaders today said they had not yet struck a deal with management on cost cuts at VW brand, denying a report in a German business magazine.
Manager Magazin had earlier reported on its website that VW had agreed with labor leaders on cutting costs at the VW brand by between 5 billion and 6 billion euros ($5.5-6.6 billion) by 2025 at the latest.
VW will take advantage of natural attrition to cut between 10,000 and 20,000 staff over the next decade, the magazine had said, citing unnamed sources familiar with the talks.
"Constructive talks are still ongoing and will be continued tomorrow. The fact is: the pact may still fail. Especially if the company does not make concrete assurances for certain products, such as battery manufacturing," Gunnar Kilian, a labor leader at VW's group works council, said in an e-mailed statement.
VW didn't return calls seeking comment.
VW's brand management has yet to agree with labor leaders on fixed targets and quotas for products and investments in German factories as well as prospects for battery production in Germany, works council chief Bernd Osterloh said in an interview with Braunschweiger Zeitung published today.
Osterloh has tied labor's agreement to cut jobs in Germany with VW building a huge battery plant for future electric vehicles.
VW is under pressure to make cuts at high-cost operations in Germany to fund a strategic shift to electric cars and autonomous driving after its diesel-emissions scandal. The automaker has been in talks with labor on the future pact since June.
A cost-cutting deal at VW's largest division by sales and revenue is seen by analysts as key to the stock's revival. VW expects the unit's operating margin to climb to 4 percent by 2020 from about 2 percent, less than an original target of 6 percent, the magazine said. VW Finance chief Frank Witter in June said the marque hoped this year to at least repeat last year's operating margin of 2 percent.
Automotive News Europe contributed to this report