Oliver Blume

Volkswagen is considering the unprecedented step of closing its factories in Germany for the first time in its 87-year history as part of a broader effort to cut costs amidst increasing competition from Chinese electric vehicle manufacturers, CNN and Financial Times report.

German giant Volkswagen is set to follow Tesla's lead with a high-profile price drop as the battle for global dominance in the electric car segment intensifies, and local challengers race ahead in key market China.

German luxury carmaker Audi's management board, including Chief Executive Rupert Stadler, has been sharply criticized by company managers, Bild am Sonntag reported on June 25, citing an internal dossier.

It said the executive board had shown no signals of a fresh start, change or readiness for the future, and that workers were frustrated with "disastrous" indecisiveness.