Volkswagen and labor leaders head into a second day of talks over cost cuts on Tuesday after negotiations that lasted late into Monday night ended without agreement.

Volkswagen management and labour representatives negotiated late into the night last night 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.

Lengthy talks between German giant Volkswagen and trade union negotiators aimed at resolving a bitter labour dispute over planned cutbacks at the carmarker resumed on Tuesday after a brief overnight break.

Volkswagen and labor leaders resumed talks as they continue protracted negotiations over how to move forward with cost cuts across the German auto giant’s domestic operations.

The messy restructuring has already thrown a wrench in the company’s investment planning, forcing Volkswagen’s biggest owner to warn of a possible non-cash impairment of as much as €20 billion ($21 billion).