Volkswagen announced sweeping changes to its German operations, including more than 35,000 future job cuts

Volkswagen on Friday announced sweeping changes to its German operations, 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.

Union leaders hailed the agreement as a “Christmas miracle” after 70 hours of gruelling negotiations, the longest in the company’s 87-year history. There would be no immediate site closures or layoffs, and VW appeared to have backed away from demanding 10% wage cuts, reports Reuters.

The deal avoiding costly strikes may also provide relief to investors after months of negotiations. Shares rose 2.4% in extended trade after the deal. They have lost 23% this year .

Volkswagen has been in talks with union representatives since September over measures it called necessary for it to compete with cheaper Chinese rivals and handle lacklustre demand in Europe and slower-than-expected adoption of electric vehicles.

Around 100,000 workers have already staged two separate strikes in the past month, the largest in Volkswagen’s history, protesting against cost-cutting plans.

“With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures,” Volkswagen Group CEO Oliver Blume said in a statement.

“We are now back in a position to successfully shape our own destiny.”

VW said the deal would allow savings of 15 billion euros ($15.6 billion) annually in the medium term and saw no significant impact on its 2024 guidance. While there were no immediate closures, VW said it was looking into options for its Dresden plant and repurposing the Osnabrueck site, including looking for a buyer. Some production would be shifted to Mexico.

Vehicle production would shut at the Dresden plant by the end of 2025. VW AG’s staff will not get raises under a collective wage agreement over the next four years, while some bonuses will be scrapped or reduced.

Production at VW’s Wolfsburg plant, its biggest, will be cut to two assembly lines from four.

“No site will be closed, no one will be laid off for operational reasons and our company wage agreement will be secured for the long term,” said works council chief Daniela Cavallo.