The Globe and Mail reports in its Saturday edition that Volkswagen chief executive officer Oliver Blume warned on ?Friday that the car sector's problems would only intensify in the coming years, arguing deep cost cuts were needed to keep Europe's top automaker afloat as it gears up for weeks of crunch talks over a planned revamp. A Reuters dispatch to The Globe says that Volkswagen is undergoing what is considered to be ?its largest-ever restructuring, possibly ranging from a fresh 50,000 job cuts to the carve-out of some divisions. Squeezed by aggressive Chinese competition, falling profits in China and painful import tariffs in the ?United States, Volkswagen is struggling with declining profits and costly overcapacity. "The situation is more than critical," Mr. Blume ?said in an internal memo, adding that while current margins of less than 4 per cent were solid in the current environment "it is by no means sufficient to generate enough funds in the long term for new technologies, new products and our sites." Mr. Blume, who will ?next week tour Volkswagen plants at risk under the current turnaround plan, said the German carmaker's overhead costs ?remained more than 30 per cent higher than those of comparable companies.