“We had three priorities in the negotiations: Reducing excess capacity at the German sites, reducing labour costs and reducing development costs to a competitive level,” VW brand CEO Thomas Schaefer said at a press conference in Berlin. In all three cases, the group had been able to find “viable solutions”, Mr Schaefer said.

Volkswagen on Friday said it had agreed with unions to cut more than 35,000 jobs at its German sites by 2030 in a socially responsible manner, which would help achieve more than 15 billion euros ($15.

More than 35,000 jobs will be cut across Germany as Volkswagen trims production capacity by 734,000 units. Production will end at Volkswagen’s Transparent Factory next year, while Golf production is moving to Mexico.