BERLIN, Germany: Volkswagen is considering its most sweeping restructuring yet, with plans that could eliminate up to 100,000 jobs and shut four German factories as the automaker struggles with weak demand, rising Chinese competition, and U.S. tariffs, according to two people familiar with the matter.

The proposals have been presented to members of Volkswagen's supervisory board and are expected to be discussed at a meeting on July 9, the sources said.

The restructuring would include closing plants in Hanover, Zwickau, and Emden, as well as Audi's Neckarsulm facility, putting more than 45,000 jobs at risk. Combined with 50,000 cuts already planned, total job losses could reach 100,000.

If implemented, the closure of four plants and up to 100,000 job cuts would mark the largest restructuring ever proposed by a global automaker, surpassing General Motors' major workforce reductions in the early 1990s and during the 2008-09 financial crisis.

Volkswagen is under mounting pressure from Chinese automakers, U.S. tariffs on vehicle imports, and weakening demand across Europe, challenges the company has said have made its current business model unsustainable.

CEO Oliver Blume presented the plans to senior executives earlier in the week to build support for deep cost cuts, which are expected to face strong opposition from unions and the state of Lower Saxony, Volkswagen's second-largest shareholder.

Manager Magazin first reported the overhaul, saying Volkswagen also plans to reduce investment by about 15 percent to just over 130 billion euros over the next five years. The magazine added that Blume and Chief Financial Officer Arno Antlitz aim to restructure the company by spinning off the core Volkswagen brand and parts operations into separate entities.

Volkswagen shares fell 3.4 percent to a 16-year low.

"The high costs are merely a symptom, not the cause. They do not address the root cause, which is weak sales," Ingo Speich of Volkswagen shareholder Deka told Reuters.

"VW must bring attractive products to market that are in high demand; that would put an end to the debate over costs."

A Volkswagen spokesperson declined to comment on "confidential documents." "The entire group, including its brands and subsidiaries, must undergo far-reaching change," the spokesperson said.

Volkswagen's works council and Germany's IG Metall union vowed to resist any factory closures or job cuts. "Should such plans go ahead, we would do everything in our power to prevent them," they said in a joint statement on June 26.

The premier of Lower Saxony also said the state would not support the proposals.

Volkswagen employed 667,164 people globally in 2025, with nearly 43 percent of its workforce based in Germany.

The company has steadily lost market share in China, falling behind BYD in 2024 and dropping to third place in 2025. Chinese automakers have also expanded rapidly in Europe, intensifying pressure on Germany's largest carmaker.