German automotive giant Volkswagen is facing the prospect of strikes, after the IG Metall union declared the end of a truce in their labour dispute on Saturday, which had prohibited industrial action during initial negotiations.

BERLIN (Reuters) -Workers at Volkswagen could go out on strike across Germany as soon as next week, the IG Metall union said in a notice on Friday, as a clash between labour and management over layoffs and plant closures escalates.

IG Metall said its members would down tools for a few hours a day after the auto giant and union leaders failed to agree on how to cut costs.

Volkswagen, under pressure from high costs and Chinese competition, rejected union proposals for cost savings on Friday, just days ahead of planned walkouts meant to avoid unprecedented plant closures.

Volkswagen has rejected a proposal from labor representatives that they said could avert layoffs and factory closures. VW said it wouldn't have delivered the advertised savings. Strikes loom in the brewing labor dispute.

German Volkswagen employees have reached their limit. They are threatening a warning strike that could potentially escalate into a prolonged protest. On 21 November, after the third round of negotiations with the company's management ended in failure,