Volkswagen's management wants to close at least three plants, cut tens of thousands of jobs, and also slash pay by 10% for remaining staff, according to a statement from staff representatives.

The manufacturer is also seeking to downsize all remaining plants, added the document.

Weak demand in Chinese and European markets, along with a botched electric vehicle transition, have hit the manufacturer's earnings.

If announced closure plans go ahead, this would be the first time Volkswagen has shut a factory on home soil in its 87-year history. VW currently has 10 plants and 300,000 employees in Germany.