The crisis is escalating in the automotive giant.

The German car manufacturer Volkswagen is working on a series of cost-cutting measures, including a 10% wage cut for its main brand and a freeze on salaries for two years, with the aim of saving 4 billion euros.

The company is discussing the closure of some of its factories in Germany while reporting a 41.7% loss in profit in the third quarter. The firm, which also recorded a 7.1% decline in vehicle deliveries, plans to lay off thousands of employees and downsize its remaining facilities.

General Works Council Chairperson Daniela Cavallo stated, "This is the plan for Germany's largest industrial group to downsize in its own country." According to reports, the company is also asking employees to forgo 20% of their salaries.

SOME PRODUCTION FACILITIES MAY BE CLOSED

According to reports in the German media, Volkswagen management has discussed various potential cost-saving moves. These include limiting bonuses for senior employees, reducing additional payments made for employees' anniversaries, and exploring the possible closure of some German production facilities.

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.