Volkswagen and German unions have reached a significant agreement following extensive negotiations aimed at addressing cost-cutting measures amid declining demand in Europe. The deal, announced on December 20, includes job security provisions and the retention of 10 plants in Germany despite the planned reduction of 35,000 positions. CEO Oliver Blume stated that the agreement would allow VW to save €15 billion annually while ensuring no immediate closures or layoffs. The auto giant faces stiff competition from cheaper Chinese rivals, necessitating these measures as it navigates a challenging market.