Ailing auto giant Volkswagen warned Wednesday that "painful" cost cuts were unavoidable as third-quarter profit plummeted, fuelling tensions with unions which fear mass job losses and factory closures on home turf Germany.

Ailing auto giant Volkswagen warned Wednesday that "painful" cost cuts were unavoidable as third-quarter profit plummeted, fuelling tensions with unions which fear mass job losses and factory closures on home turf Germany.

Profits tumbled at Volkswagen, the German manufacturer confirmed on Wednesday, dragged down by challenging market conditions and higher costs.

Europe's biggest carmaker Volkswagen reported a 64-percent drop in third-quarter net profit Wednesday, as it struggles with high costs and slowing sales in China. Global vehicle deliveries fell by seven percent in the July to September period, Volkswagen said, with an increase in sales in North America failing to offset a 15-percent fall in China.

Europe's biggest carmaker Volkswagen reported a 64-percent drop in third-quarter net profit Wednesday, as it struggles with high costs and slowing sales in China. Global vehicle deliveries fell by seven percent in the July to September period, Volkswagen said, with an increase in sales in North America failing to offset a 15-percent fall in China.