Volkswagen plans to close at least three manufacturing plants in Germany and lay off tens of thousands of workers

Volkswagen is planning to shut down "at least" three factories in Germany, lay off tens of thousands of employees, and scale down operations at other domestic plants, according to the company’s employee group on Monday.

These closures would mark the first time in Volkswagen’s 87-year history that it has shuttered factories in Germany, highlighting the difficulties facing the country’s largest manufacturer. The plans have already drawn resistance from labor unions, with the possibility of strikes looming as negotiations continue. Volkswagen currently employs 295,000 people in Germany.

The company has been in talks with unions for weeks over its cost-cutting and restructuring plans.

“If VW follows through with this dystopian plan on Wednesday, the board should expect corresponding consequences from us,” said Thorsten Groeger, lead negotiator for IG Metall, one of Germany’s most powerful unions, in a statement.

Volkswagen’s works council, which represents employees and holds half the seats on the company’s board, said the proposed cuts—including a 10% reduction in pay for all workers—are more severe than anticipated and represent a major shift.

"All German VW plants are affected by this. None of them are safe," said Daniela Cavallo, chairperson of the works council, in a statement. She explained that Volkswagen plans to move some production overseas or outsource it, urging workers not to view the proposals as mere negotiation tactics.

"This is Germany’s largest industrial group preparing to start selling off its operations in its home country," Cavallo warned.