LONDON, Dec 20 (Reuters) - Volkswagen

announced sweeping changes to its German operations, including

more than 35,000 future job cuts and capacity reductions in a

last-gasp deal between Europe's top carmaker and unions on

Friday to avert mass strikes.

Here are some reactions to the news:

GERMAN CHANCELLOR OLAF SCHOLZ:

"It's good news that the company and trade unions have

agreed on a good, socially acceptable solution today."

"Despite all the hardships, it ensures that Volkswagen and

its employees can look forward to a good future.

"It shows that Germany remains an attractive location for

industry and an important country for the car industry."

PORSCHE SE, VOLKSWAGEN'S TOP SHAREHOLDER:

"Porsche SE welcomes the agreement reached between the

company and employee representatives. The agreed catalogue of

measures makes a substantial contribution to a structural and

sustainable reduction in costs."

"The result of the negotiations will lead to a considerable

improvement in Volkswagen's competitiveness. This has created a

solid basis for the necessary future investments at Volkswagen.

"The task now is to systematically implement the measures

from the beginning of the year."

ALEXANDER KRUEGER, CHIEF ECONOMIST AT HAUCK AUFHAEUSER

LAMPE:

"At first glance, it looks like a compromise that both sides

can more or less live with ... Other companies are also pursuing

job-cutting plans and VW seems to be just the beginning.

"Competitive price pressure will probably require further

adjustments at a later date. All this activity shows how urgent

it is for Germany to make a fresh start in terms of economic

policy."

MATTHIAS SCHMIDT, EUROPEAN AUTO MARKETS ANALYST:

"I think VW went into the discussions over-emphasising the

measures they required in hoping to achieve a win-win for both

sides where both could claim this as a win.

"35K job cuts on a demographic curve up to 2030 is likely not

enough and over a too (long) time frame to address the current

stagnation we are seeing across the European market.

"I would say the unions can take more from this than VW but

realistically, because of the complicated structure of the

company, this was probably the best they could have

realistically hoped for."

LOWER SAXONY STATE PREMIER STEPHAN WEIL:

"The compromise that has been reached cannot be taken for

granted, but has been hard-earned. It is now tied to clear

prospects for Volkswagen in Germany and, above all, in Lower

Saxony. This also applies with regard to future areas such as

battery-cell production.

"The compromise was difficult for everyone involved, but it

was urgently needed."