Volkswagen plans to close three factories in Germany, lay off thousands of staff and cut wages to deal with its severe crisis, the works council announced today, calling it a “bleeding” unprecedented in its 80-year history.

“Management wants to close at least three VW factories in Germany. It also intends to reduce the size of all factories that will remain in the country,” said the statement of the president of the workers’ council, Daniela Cavalo, who revealed information passed on to her by management.

The management of Volkswagen did not react to the revelations, but through a representative invited the social partners to “confidential” and “internal” talks.

According to an article in the financial newspaper Handelsblatt, the group is looking to save a total of 4 billion euros.

“The next appointment for wage talks is scheduled for Wednesday and it is a fact that Volkswagen is at a turning point in its history. The situation is serious and the responsibility of the social partners is enormous,” said the representative.

In Berlin, Chancellor Olaf Solz warned through one of his representatives of the possibility of a large wave of layoffs.

The government wants to hear what Volkswagen management has to say, but “the chancellor’s position is clear, which is that workers should not suffer the consequences of any bad decisions made by management in the past and that the priority should be now let it be the safeguarding of jobs,” said Wolfgang Buchner.