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flag Volkswagen struggles with high labor costs in Germany, impacting competitiveness against rivals like BMW.

flag Volkswagen faces difficulties staying competitive in Germany due to high labor costs, spending between 15.8% and 17.5% of revenue on labor, compared to rivals like BMW and Mercedes-Benz, who spend between 9.5% and 11%. flag The high costs are partly because VW makes many components internally and employs nearly 45% of its workforce in Germany, where labor costs are the highest globally, averaging 62 euros per hour. flag Unions demand a 7% pay rise, while Volkswagen threatens a 10% cut, amid broader concerns about Germany's industrial competitiveness.

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