VW works council says still away from cost-cut deal with management

Volkswagen's labor leaders said they were still quite a bit away from an agreement with management on cost cuts and strategy for the main autos division.

"A collapse of the future pact continues to be possible because we are still lacking essential commitments from the company," leaders of Volkswagen's (VW) works council said in a letter distributed to German staff on Thursday.

Labor bosses at Europe's largest carmaker want management to agree to fixed targets and quotas for products, output and investment as the two sides wrestle over a turnaround plan for the core VW brand.

Talks between labor and management over the so-called future pact will resume later on Thursday, after leaders have briefed workers at a staff gathering in Wolfsburg.

(Reporting by Andreas Cremer; Editing by Maria Sheahan)