BERLIN, Oct 29 (Reuters) - Volkswagen wants

to achieve the majority of its billion-euro savings drive

through pay cuts, Handelsblatt reported on Tuesday, citing a

management board document.

A proposed 10% cut to salaries at the core brand alone would

bring in almost 800 million euros ($864 million) annually,

Handelsblatt cited the document as saying.

In addition to the cancellation of various bonus payments,

allowances and pay rises, savings would add up to around 2

billion euros per year total, which is about half of the

targeted savings of 4 billion euros, it reported.

Volkswagen did not immediately respond to requests for

comment from Reuters.

Volkswagen's works council head said on Monday that the

carmaker plans to shut at least three factories in Germany, lay

off tens of thousands of staff and shrink its remaining plants

in Europe's biggest economy as it plots a deeper-than-expected

overhaul.

Closing and selling off plants would bring significantly

less in savings, Handelsblatt reported.

Volkswagen wants to adjust capacities but avoid closing

sites if possible, with the aim being to find new owners for

affected plants if necessary, according to the document.

The list of suggestions for savings also includes measures

that affect component production and technical development.

However, the document does not contain any information on

the total possible number of jobs at risk, said Handelslblatt.

($1 = 0.9261 euros)

(Writing by Miranda Murray, Editing by Friederike Heine and

David Evans)