In early September, Volkswagen agreed to start the first round of negotiations with unions a month early – they are now scheduled for September 25th.

“First of all, the threat of mass layoffs and plant closures must be off the table,” IG Metall trade union spokesperson Jan Mentrup told The Local, adding that  “warning strikes could follow from December 1st after the end of the peace obligation”.

After Europe’s biggest carmaker cancelled a long-standing job-protection deal, the jobs of around 120,000 staff in Germany are now only guaranteed until the end of June 2025 compared with 2029 previously.

The company has also said it is not ruling out “redundancies for operational reasons” after this date.

READ ALSO: EXPLAINED: Will there be job losses and plant closures at Volkswagen in Germany?

Volkswagen has also said it could close some of its factories in Germany to save money.

“In the current situation, even plant closures at vehicle production and component sites can no longer be ruled out without swift countermeasures,” it said.

Talks are therefore likely to be fraught, with unions promising to do “everything in our power” to oppose the cost-saving measures.

“At IG Metall, we will fight with all our might against layoffs,” Mentrup said, adding that challenges at Volkswagen should be overcome in conjunction with the workforce rather than against them.

“If necessary, tens of thousands of employees will back this up emphatically,” said the spokesperson, alluding to the possibility of strike action.

Volkswagen has been struggling in what it calls the “very demanding and serious” situation that the European car industry is facing. The brand has also been slow to transition to electric vehicles and has been outpaced by cheaper Asian models.