Volkswagen is facing a potential conflict with trade unions as it contemplates its first-ever factory closures in Germany after nearly 90 years.

The company will outline its plans to 18,000 workers in Wolfsburg on Wednesday, with possible closures in Osnabrueck and Dresden.

Volkswagen is also ending its 30-year employment protection agreement to address competitiveness challenges and adapt to a tougher economic environment and new market competitors, CNBC has reported.

Both the General Works Council and IG Metall union have expressed strong opposition to these proposed measures, highlighting concerns over job security and the impact on the company.

Written by B.C. Begley