Analysts at Jefferies said Volkswagen may force the decision to close factories this year, paving the way for the elimination of more than 15,000 jobs. Jefferies cited comments from Volkswagen executives on Monday that the automaker could close production facilities without supervisory board approval and may need to book provisions of up to 4 billion euros ($4.4 billion) in the fourth quarter. The supervisory board has blocked management's restructuring efforts in the past.
Analysts said in a note that unions should feel pressure to reach a new deal that would give Volkswagen the ability to force layoffs. The report cited comments made by Volkswagen during its North American road show.
A Volkswagen spokesman declined to comment.
The company suffers from high costs. Earlier this month, Volkswagen ended a 30-year job guarantee and had previously said it was considering closing factories in Germany.
Volkswagen executives told these analysts they had no backup plan if negotiations with unions to improve competitiveness failed.