Volkswagen to shut three factories and cut thousands of jobs, says union

German carmaker warns of stagnation in the European sector amid news of deeper-than-expected action

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German carmaker Volkswagen is planning to shut at least three factories in its home country, lay off thousands of workers and cut pay by 10%, according to the company’s union.

The deeper-than-expected cuts come as the company faces weak sales and slow expansion in the electric vehicle (EV) sector amid tough competition from Chinese manufacturers.