(Bloomberg) — Volkswagen AG’s top labor leader said Europe’s largest automaker plans to close at least three factories in Germany as part of sweeping cost cuts to become more competitive.

Works council president Daniela Cavallo, who also sits on VW’s supervisory board, said in a statement in Wolfsburg, Germany, that the plans also include implementing across-the-board wage cuts of 10 percent across the main VW brand and downsizing all remaining facilities in the country.

“This means rolling out more products, quantities, shifts and entire assembly lines, far beyond what we’ve done so far,” Cavallo said in front of hundreds of VW employees on Monday. “This is starvation, losing weight in installments.”

Chief Executive Officer Oliver Blume pointed out the high costs of the VW brand, which is struggling with declining demand in Europe and intensifying competition from BYD Co. in China. Unionists say workers are being made to pay for mistakes in the boardroom, including a botched electric vehicle shift and poor pricing policy.

Cavallo’s speech was part of meetings held by the working class at various VW facilities across the country. They start a contentious week for Europe’s largest automaker, which is expected to post a decline in sales and profits when it reports third-quarter results on Wednesday.

Cavallo said VW’s cost-cutting drive could threaten “tens of thousands” of jobs in Germany. He added that luxury car manufacturer Porsche has terminated its production relationship and future model planning with the Osnabrück factory.

The automaker has had a rough few weeks since issuing its second profit warning in three months in late September. Premium brands, including Audi and Porsche, have been the automaker’s biggest profit generator in recent years, but they are currently struggling. Porsche AG on Friday said it was considering cost cuts and reviewing its model lineup after falling demand in China hit its profits.

So far, nothing has come out of the negotiations. The grace period will expire next month and it will be possible to carry out warning strikes at VW plants in Germany from 1 December.

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