Talks between Volkswagen managers and labour leaders are expected to stretch into the night for a second day, a source close to the matter said on Tuesday, in a sign the two sides are still far apart in a battle over German cost cuts.

Volkswagen AG needs to take “decisive action” at its German factories to return them to full operating capacity, Chief Financial Officer Arno Antlitz said.

Volkswagen AG's stalemate with labor leaders looks increasingly likely to drag into 2025, denying Chief Executive Officer Oliver Blume the fresh start he's seeking for Europe's biggest carmaker.

Volkswagen management and labour representatives negotiated late into the night on Monday in a last-ditch round of talks on cost cuts before Christmas, with unions saying it remained far from clear whether compromise would be reached.