In t is 2.30pm in Wolfsburg, an industrial town in the central German state of Lower Saxony, and Klaus Wiehe, 35, one of the 50,000 workers at Volkswagen’s mammoth flagship factory, is restless as he prepares for the afternoon shift. “There is chaos, there is nervousness. People are afraid, unmotivated,” he says the 35-year-old says of the atmosphere at the plant. , his chin buried in the collar of his orange T-shirt. “There is distrust too. The guys are even suspicious of the trade unions.”

It all began with a speech last week by Bernd Pischetsrieder, VW’s chief executive. The Wolfsburg plant, the company’s largest, could no longer afford its high costs, he said. Cars would have to be produced more cheaply, and this which could entail both job and wage cuts. Rumours ensued that the facility, which is now running at only about 65 per cent of capacity, could lose as many as 10,000 jobs.