Volkswagen supervisory board adjourns without backing plant closures and job cuts

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10 days · 3 summary articles
Volkswagen supervisory board adjourns without backing plant closures and job cuts
Volkswagen supervisory board debates sweeping restructuring plan amid protests
ContinuationVolkswagen explores selling Chinese-made models in Europe as restructuring looms
Volkswagen’s sweeping restructuring plan faces internal resistance after the company’s supervisory board adjourned on Thursday without endorsing controversial proposals to close four German plants and slash up to 100,000 jobs worldwide. The board, which met in Wolfsburg, approved only a partial reduction of the group’s model range and equipment options, leaving critical decisions on employment and factory closures unresolved as protests erupted across the company’s German sites.
Confronted with mounting pressure from shareholders, labor representatives and regional politicians, Volkswagen chief executive Oliver Blume presented a “future plan” that would halve the group’s model portfolio by 2030 and cut equipment options by up to 75 percent. The company also confirmed plans to shrink global production capacity from 12 million to 9 million vehicles annually, but gave no details on which factories might be affected or when any closures would occur. “With our future plan we are taking the next phase of transformation into our own hands,” Blume said in a statement issued after the meeting .
The supervisory board, which includes representatives from IG Metall, the German state of Lower Saxony and the federal government, adjourned without taking formal votes on the most contentious elements of the plan. Lower Saxony’s prime minister and board member Olaf Lies, a senior figure in the SPD, described the session as “very intensive” and acknowledged that “the question of when decisions will be made is still unclear.” He reiterated that plant closures “are not a future strategy” and stressed the need to secure a long-term perspective for all sites .
Labor leaders reacted with fury. Daniela Cavallo, chair of Volkswagen’s works council, accused Blume of disrespect and demanded that he address employees directly on Friday to clarify the company’s intentions. “The management’s handling of the workforce has reached a level of disrespect that is no longer acceptable,” she told the company newspaper. “Oliver Blume now has a duty to at least limit the damage.” IG Metall announced protests at more than a dozen locations, with a rally of around 500 workers in Wolfsburg drawing horns and sirens outside the main board building .
Media reports published on Thursday suggested that production could cease in Zwickau and Emden by 2031, at the commercial-vehicle plant in Hannover by 2032 and at Audi’s Neckarsulm facility by 2034. These timelines remain unconfirmed by Volkswagen, which has so far refused to comment on specific sites or job losses. Analysts quoted in German business press described the proposals as the most radical restructuring in the company’s 89-year history, driven by intensifying competition from Chinese automakers, US import tariffs and rising costs .
The supervisory board’s failure to endorse the full package leaves Blume’s leadership under immediate scrutiny. Commentators in the *Handelsblatt* described his plan as “shrinking before it has even started,” noting that the board’s current composition makes it unlikely to approve the most drastic measures without prolonged negotiation. “Blume set out as a tiger and ended up as a doormat,” one insider told the newspaper .
Volkswagen’s finance chief Arno Antlitz warned that previously agreed cost-cutting measures are no longer sufficient in the face of tariffs, geopolitical risks and Chinese competition. “We fundamentally need to reshape our business model,” he said, adding that the group must simplify operations, reduce platforms and accelerate decision-making to survive .
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