Car giant to shut at least three factories with TENS OF THOUSANDS of jobs to be cut in shock overhaul

VOLKSWAGEN will shut at least three of its factories in Germany and lay off tens of thousands of staff.

The German car-making giants will also shrink their remaining plants and cut staff pay by 10% in a deeper-than-expected overhaul of one of the world's most recognisable brands.

In recent times, the famous marque has faced tough competition from Chinese manufacturers, as well as weak sales and a slow expansion into the electric vehicle sector.

Historically known for the Beetle but also for the Golf and Polo hatchbacks, VW also owns a number of other brands including Skoda and Cupra, as well as the likes of Bentley, Porsche and Audi.

In an announcement on Monday from VW’s headquarters in Wolfsburg, Germany, works council chief, Daniela Cavallo, said: “All German VW plants are affected by these plans, none is safe.”

The works council said the factory in the northern city of Osnabruck, which recently lost a major Porsche contract, is likely to be closed with redundancies set in across the workforce, and it seems others will follow.

This would result in tens of thousands of staff losing their jobs - with entire divisions closed or sent abroad.

In total, the company operates from 10 sites in Germany under the VW brand, and employs more than 120,000 people across the country - with roughly half of those in Wolfsburg.

Volkswagen said in a statement that it would make proposals for how to cut labour costs on Wednesday, with workers and management to meet for a second round of wage talks as the brand releases third-quarter results.

According to Bloomberg, Volkswagen declined to comment on the exact nature of the cuts, and it is currently unknown which VW facilities face the chopping block.

Major sites include their HQ in Wolfsburg, as well the Emden plants, the VWN factory in Hanover, and the MEB plant in Zwickau.

In a statement, the brand's CEO, Thomas Schaefer, said: "We are not earning enough money with our cars currently.

"At the same time, our costs for energy, materials and personnel have continued to rise. This calculation cannot work in the long term.

"So we have to get to the root of the problem: we are not productive enough at our German sites and our factory costs are currently 25-50% higher than we had planned.

"This means that individual German plants are twice as expensive as the competition.

"In addition, we at Volkswagen are still processing many tasks internally that the competition has already outsourced more cost effectively.

"This means that we cannot continue as before. We must quickly find a joint and sustainable solution for the future of our company."

VW aren't the only famous German brand in trouble at the moment, as BMW recently revealed it will have to recall 1.5 million vehicles over a braking problem.

The issue, which has been found in cars worldwide including in the UK, will mean it expects a drop in deliveries and a lowered profit forecast for 2024.

Also, Vauxhall could close two major plants in the UK after a row between Stellantis and the government.

The motoring giants, who are Europe's second-biggest maker of cars, are weighing up their options after months of discussions with the government over their proposed quotas for electric vehicles.