Amid pressure to reduce operation cost, Volkswagen is considering the closure of its factories in Germany.

Reuters learned Monday that Volkswagen is contemplating a shutdown due to the intense competition from automaker rivals in Asia. Volkswagen's current update also indicates the first-ever conflict between Chief Executive Officer Oliver Blume and unions that influence Volkswagen.

Volkswagen shared that the executive board's plans are being resisted by its vehicle plant and component factory in Germany. Arno Antiltz, chief financial officer, wants to speak to the company staff together with brand chief Thomas Schaefer at a council meeting Wednesday.

YOU MIGHT BE INTERESTED IN: Tesla Rival BYD Sales Surge in August: Hybrid Vehicles Record 48% Increase, Battery-Only Cars Up 12% 

Works council head and IG Metall Union member Daniella Cavallo shared that it is expected for CEO Blume to participate in the negotiations. The official added that the meeting on Wednesday would be "very uncomfortable" for Volkswagen's management.

Herbert Diess resigned as CEO in 2022, prompting IG Metall to oppose attempts at essential changes within the Volkswagen group. 

Last month, Volkswagen rescheduled the Trinity flagship EV's launch by the end of 2032 instead of 2026. The Handelsblatt newspaper shared that the automaker has directed its focus to its new electric battery-powered Golf. 

The vehicle would be implemented with Level 4 self-driving features. CEO Blume has also reallocated the vehicle's launch investments. The delay also prolonged the use of its current EV platforms; the MEB (used by VW's ID cars) and PPE (used by Porsche electric Macan and Audi Q6 E-Tron). The investment costs can also be repaid with this extended usage.

In the next 36 months, PPE will receive a software upgrade, while the MEB is anticipated to be elevated to MEB+ in 2026. These upgrades would include the contribution of Rivian, which also became Volkswagen's new partner.

The postponement was a result of the EV market's slowdown and the cost-cutting plans of CEO Blume. The ID Golf is expected to be released in 2029, as it would be the first vehicle from Volkswagen to operate the Scalable Systems Platform (SSP) instead of Trinity.

IN CASE YOU MISSED IT: Volkswagen Postpones Trinity Flagship EV, Considers Early Electric Golf Launch

Copyright @ MOTORTIMES, All rights reserved. Do not reproduce without permission.