Volkswagen, unions still locked in talks over plant closures, pay cuts, sources say

HANOVER, Germany (Reuters) – Talks between Volkswagen (ETR:) and labour unions over plant closures and pay cuts are expected to last well into Thursday as both sides have still not reached a deal, according to two people familiar with the matter.

Talks have continued since Monday in the hope of reaching an agreement before Christmas to avert massive strikes that the IG Metall union has warned could start as soon as next year.

Talks could still fall apart, the people said.

Volkswagen declined to comment.

IG Metall was not immediately available for comment.