Volkswagen has reached a deal with the IG Metall union that will avoid closing German plants in exchange for capacity reduction at factories. The carmaker has been in talks with the union since September and has finally reached a deal that avoids job cuts and plant closures.

Volkswagen announced sweeping changes to its German operations on Friday (December 20), including more than 35,000 future job cuts and sharp capacity reductions in a last-gasp deal between Europe's top carmaker and unions to avert mass strikes.