VW’s Union Problem Nowhere Near Deal as Talks Remain Deadlocked

Volkswagen AG’s management and labor leaders remain far from a deal as the two sides hunkered down for a second day of negotiations over proposed layoffs and factory closures, people familiar with the matter said.

VW brand Chief Executive Officer Thomas Schäfer and human relations chief Gunnar Kilian, who took part in Monday’s talks in Hanover, are set to tell the group’s management board that the prospect of an imminent deal are dim, according to the people, who spoke on condition of anonymity because the discussions are private.

Tuesday’s negotiations are expected to go late into the night, ...