Company has said plant closures may be needed in Germany
Unions have vowed to fight any such moves
German industry struggling with high costs, competition
Union threatens strikes from December

HANOVER, Germany, Sept 25 Reuters  Volkswagen flatly rejected union demands after the first round of bitterly contested talks ended without agreement on Wednesday, as workers at Europe39;s largest automaker threatened strikes against layoffs and possible plant closures.

Tensions at the carmaking giant are running high as the spectre of factory closures, which would be a first for the company in Germany, has set it on a collision course with the powerful IG Metall union.

IG Metall must also negotiate new labour deals for the core VW brand39;s 130,000 workers in Germany, after the group this month ended agreements that had safeguarded employment at six of its plants in western Germany since the mid1990s.

Worker representatives have vowed to fight job cuts, blaming top management and the government39;s faltering support for Volkswagen39;s ills.

The VW brand39;s personnel chief said the division must cut costs to stay competitive.

This will require a contribution from the employees, Arne Meiswinkel said after the talks in Hanover.

IG Metall has threatened strikes from the start of December and is insisting on a 7 pay rise.

Site closures and mass layoffs remain on the table, said Thorsten Groeger, IG Metall39;s chief negotiator with Volkswagen. No date has been set for…