Jefferies analyst said that Volkswagen may forcibly pave the way for layoffs of over 0.015 million people by deciding to close factories this year. Jefferies quoted Volkswagen executives' comments on Monday that Volkswagen may close production facilities without the approval of the Supervisory Board, which could result in reserves of up to 4 billion euros (about 4.4 billion US dollars) in the fourth quarter. Analysts said: "Volkswagen will have the ability to force layoffs, and the unions should feel the pressure to reach a new agreement." "There is a risk of shutdown in the factories, but the union can only strike on wage issues, not because of factory closures or layoffs, unless there is no contract protection for the latter." The German manufacturer is struggling with high costs and more intense competition from Tesla (TSLA.O) and Chinese auto manufacturers led by BYD. Earlier this month, the company canceled 30 years of employment protection measures in Germany, with previous warnings that the company may have to close factories in Germany for the first time. The decision to terminate the employment protection agreement has led to a long conflict between Volkswagen and labor representatives.