Volkswagen has unveiled plans to cut up to 100,000 jobs and end production at four plants in Germany as part of a sweeping cost-cutting drive aimed at countering the rapid advance of Chinese rivals. The cull would represent nearly one-sixth of the company's global workforce, making it one of the biggest job-cutting programmes by a European company.

The Wolfsburg-based group had previously announced plans to cut 50,000 jobs in Germany by 2030 and reduce its car manufacturing capacity in the country by 500,000 units. However, according to sources familiar with the plan, the latest proposal could see an additional 50,000 jobs axed. VW is one of Germany's biggest private industrial employers, and the new job cuts plan is likely to trigger tough negotiations with unions.

The restructuring measures come as the company seeks to streamline its operations and focus on its core automotive business. Chief executive Oliver Blume has been pushing to reduce costs and raise cash by selling non-core assets, including the recent blockbuster sale of its marine engines unit Everllence to US private equity firm Bain for €7.4bn. VW's efforts are part of a broader trend in the European car industry, where manufacturers are struggling to compete with Chinese rivals that accounted for nearly one-tenth of new vehicles sold in Europe in the first five months of this year.

The new proposals would see production end at four plants: VW sites in Emden, Zwickau and Hanover, as well as an Audi factory in Neckarsulm. Blume has previously stated that closing factories outright was not his preferred solution, instead favouring "intelligent" approaches such as producing Volkswagen's Chinese models at the plants or handing them over to other carmakers or defence companies.

However, workers' representatives have expressed opposition to the plan, warning of potential job losses and reorganisation that could limit employees' rights. VW declined to comment on the new plan, which is set to be presented to the company's supervisory board on July 9. The reported details of the plan have sparked an angry response from workers' representatives, who are urging the management board to engage in meaningful negotiations with unions rather than pursuing what they see as a "blind, knee-jerk reaction".