German automaker Volkswagen has announced plans to shut three plants, the company said in a statement.
The moves which could see tens of thousands of employees lose their jobs also plans to slash pay by 10% for remaining staff and downsize all remaining plants.
The announcement came following weak demand in Chinese and European markets, along with a botched electric vehicle transition which impacted on the manufacturer’s earnings.
On top of the 10% pay cut, there will be a two-year wage freeze in 2025 and 2026.
The board also wants to abolish a monthly €167 collective bargaining premium and other bonuses.
If announced closure plans go ahead, this would be the first time Volkswagen has shut a factory on home soil in its 87-year history.
The manufacturer currently has 10 plants and 300,000 employees in Germany.
The firm warned earlier in the year that plant closures may be on the cards due to increased competition from Chinese brands and a consumer spending slowdown.
Unions are now calling for greater clarity over the future of Volkswagen.
On Wednesday, union leaders will meet VW representatives for the second round of collective bargaining negotiations.
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