Talks between Volkswagen and unions over a turn-around plan have been broken off, media reports on Monday said.

Reuters said VW labour chiefs halted cooperation with management on issues including overtime work, efficiency gains and apprenticeships last week, saying executives were trying to squeeze greater savings than agreed in November.

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VW's works council on Monday indicated that tensions between its head Bernd Osterloh and VW brand chief Herbert Diess, who have clashed over how to achieve greater savings, had not eased and called for VW group CEO Matthias Mueller to play a greater role in resolving the dispute, the news agency added.

Unions told Reuters Diess, who established a reputation for cutting costs at BMW, wants to cut temporary workers more quickly and deeply than agreed.

VW has said it cannot keep a large number of temporary staff on its books because of shrinking demand for models such as the Golf hatchback and Passat saloon.

"We would welcome if the group's management would more strongly deal with the implementation of the future pact and the compliance with agreements," a works council spokesman said in a statement emailed to Reuters.

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A spokesman for the VW brand confirmed only talks had been postponed.

But Mueller, in a letter to staff on Monday which was seen by Reuters, indicated he may get more directly involved.

"We as group management and I personally will continue to do everything, so that conflicts are resolved in a constructive manner and VW will be protected from harm," he said.

The report noted the so-called future pact would result in EUR3.7bn (US$3.9bn) in annual savings by 2020 and foresees 30,000 job cuts at the VW brand without forcing layoffs until 2025.