A week after it announced it was considering closing factories in Germany, the automaker said it was exiting a labor contract that protected workers from layoffs.
Jobs with VW in Germany are meant to be protected until 2029, but the firm could now renege on that promise.
Nine years after the carmaker admitted to concealing emissions on a massive scale, Martin Winterkorn will be tried in a German court.
For the first time in its 87-year history, the automaker is considering shuttering factories in Germany, citing the need to remain competitive.