Concerns are growing among Volkswagen's board members that sweeping cuts agreed with unions late last year will not be enough to turn around the struggling carmaker's core brand, the Handelsblatt business daily reported on Thursday.

Right before Christmas, Volkswagen reached an agreement with German unions to reduce its workforce by over 35,000 people by 2030 through a "socially responsible reduction" program. This drastic decision is part of a broader plan to cut costs in the company's domestic market.