Volkswagen is considering unprecedented factory closures in Germany, setting up a showdown with powerful unions as the country¡¯s most important industry fights for its future.

The potential measures also include trying to end the company¡¯s three-decades-old pact with workers to keep jobs secure, the company said Monday. VW¡¯s main target is its underperforming namesake passenger car brand, the profit margins of which are getting squeezed amid a sputtering transition to EVs and a consumer spending slowdown.

Any shutdowns would mark the first closures in Germany during the company¡¯s 87-year history. VW shares closed 1.3% higher after the news, paring this year¡¯s losses of 13%.