Volkswagen AG and unions start negotiations over wide-ranging cost cuts on Wednesday, with tensions between both sides higher than they’ve been in years.The talks center on VW’s plan to potentially shutter factories in Germany for the first time after scrapping decades-old job protections earlier this month.

Unions and government officials responded with alarm to the idea of plant closures in the group's home market, a decision never before taken by Volkswagen. The announcement by one of Germany's blue-chip companies adds to concerns for Chancellor Olaf Scholz after the domestic economy has struggled in recent months.

Volkswagen has embarked on crucial discussions with its trade unions, initiating a pivotal negotiation phase that will shape the future of the company's workforce and operational structure in Germany.

Powerful trade unions and executives at Volkswagen will kick off talks over pay on Wednesday that are likely to determine how aggressively Europe's biggest automaker pursues layoffs and potential factory closures in Germany.

Volkswagen AG begins negotiations with unions over potential cost cuts, including factory closures and layoffs. Tensions rise as unions threaten strikes.

Volkswagen, Europe’s largest automaker, is ramping up pressure on its workforce amid talks of potential job cuts and plant closures. The company is calling on employees to make concessions as it prepares for negotiations with the IG Metall union,

Volkswagen's CEO expects labour unions to make proposals on how to cut costs and close a gap with competitors, two days before talks over plant closures and new wage deals. Europe's top carmaker earlier this month cancelled long-standing job security schemes and said it was considering plant closures in its home market for the first time.