Volkswagen AG Chief Executive Officer Oliver Blume told workers that current union proposals to cut costs offer a starting point for negotiations but don’t go far enough to address flagging competitiveness at the carmaker’s namesake brand.

Volkswagen's CEO and labour boss clashed during a staff meeting on Wednesday, with management pushing for major cuts while workers warned of more strikes if plant closures remain part of wage negotiations at the embattled German automaker.

Volkswagen chief executive Oliver Blume on Wednesday defended the carmaker's cost-cutting programme in a tense meeting at company headquarters in Wolfsburg, as thousands of employees gathered to protest.