A major crisis at a famous automotive company! Salaries will not even be paid.

According to a report by Handelsblatt, based on sources close to the matter, Volkswagen is working on a series of cost-cutting measures aimed at saving 4 billion euros, including a 10% wage cut for its main brand and a freeze on wages for two years.

SOME PRODUCTION FACILITIES MAY BE CLOSED

According to Handelsblatt, Volkswagen management has discussed various potential cost-saving moves. These include limiting bonuses for senior employees, reducing additional payments made for employee anniversaries, and exploring the possible closure of some German production facilities. A Volkswagen spokesperson declined to comment to Handelsblatt about ongoing negotiations with the company's works council and Germany's powerful metalworkers' union, IG Metall.

Since the beginning of October, Volkswagen management has been holding weekly meetings with worker representatives from its facilities in Germany to analyze where cuts can be made in costs and which models will be produced at which facilities. According to a union spokesperson, negotiations regarding wage increases are being handled separately, and the next official round will take place on October 30.