Volkswagen is facing significant challenges, including potential factory closures in Germany and the scrapping of long-standing job protections, as it seeks to reduce costs amid fierce competition and a struggling auto market. The company plans to cut over €10 billion by 2026 and has canceled employment guarantees that were set to last until 2029, leading to potential redundancies and a major conflict with unions. This move comes as part of VW's response to underutilized production capacities and intense competition from cheaper Asian manufacturers, particularly in the electric vehicle sector. The IG Metall union is preparing for negotiations and potential strikes, criticizing management's handling of the situation and calling for alternative measures like a four-day workweek. The German government has expressed concern over the potential economic impact, emphasizing the gravity of VW's cost-cutting measures.