Facing China, Volkswagen could freeze wages for 660,000 employees until 2030

German union IG Metall says Volkswagen asked human resources managers worldwide to freeze current wages and suspend increases until 2030. The company’s European and global works council says the directive has been in effect since early October and affects more than 660,000 employees, including 275,000 in Germany. IG Metall says pay must be determined through negotiations, while Volkswagen declined to comment on the reports. Volkswagen lost its top position in China to BYD in 2024 and fell to third place behind Geely in 2025.