Volkswagen is considering factory closures and ending job protection guarantees in Germany to meet cost-cutting goals amid declining car sales and increased competition, particularly from China. The automaker aims to save 10 billion euros by 2026, citing excess factory capacity and a shrinking European market. Volkswagen's PowerCo subsidiary is also cutting EV battery production, adding to employee concerns about broader cost-saving measures. The company's financial strain follows the 'Dieselgate' scandal and recent price cuts to combat competition, further impacting profits. These developments challenge Germany's traditional consensual industrial relations model, as negotiations between management and unions loom. Volkswagen's financial troubles have also cast doubt on Audi's entry into F1, with potential impacts on their future in the sport.