Volkswagen supervisory board debates sweeping restructuring plan amid protests

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Volkswagen supervisory board debates sweeping restructuring plan amid protests
Volkswagen explores selling Chinese-made models in Europe as restructuring looms
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Volkswagen’s supervisory board convened in Wolfsburg on Thursday to debate a sweeping restructuring plan that could eliminate up to 100,000 jobs worldwide and shutter four German plants by 2034, triggering nationwide protests and a looming confrontation with Europe’s largest trade union.
The proposals, first reported by *Manager Magazin* and confirmed by multiple outlets, would close Volkswagen facilities in Emden, Zwickau, Hannover and Neckarsulm—with production ceasing in Zwickau and Emden by 2031, in Hannover by 2032 and at Audi’s Neckarsulm plant by 2034. IG Metall, the powerful metalworkers’ union, organized demonstrations at more than a dozen sites, drawing around 500 workers to a rally outside Volkswagen’s headquarters in Wolfsburg. “We will not accept the closure of four German plants,” IG Metall chair Christiane Benner told the crowd. “The board is playing with people’s futures and stoking fear in an irresponsible way.”
Volkswagen CEO Oliver Blume has framed the cuts as essential to restore competitiveness amid collapsing sales in China, punitive U.S. tariffs and soaring costs across Europe. The group sold roughly two million fewer vehicles last year than before the pandemic, with Chinese brands now commanding nearly 70% of their domestic market—up from less than 40% in 2020. “The situation is existential,” said Alexander Berger, an investment strategist quoted by *Welt*. “Volkswagen is lagging behind and must respond massively to regain competitiveness.”
The plan would double the number of job cuts already agreed under a 2024 restructuring deal that preserved German factories but slashed 50,000 positions. Under the new proposals, Volkswagen would eliminate an additional 50,000 roles globally, including 40,000 in Germany alone. Betriebsrat chair Daniela Cavallo warned the board to “stop this uncertainty” and accused management of pursuing cost targets “with a watering can approach.”
German automotive lobby group VDA backed the restructuring, arguing that the industry must abandon “privileges” to survive. “We cannot keep all factories open,” VDA president Hildegard Müller told *El Diario*, urging Berlin and Brussels to cut social contributions, energy prices and bureaucracy. “Each plant we save here preserves jobs.” The sector shed 6.2% of its workforce in 2025, with component makers hit hardest by an 11% decline.
The supervisory board, evenly split between shareholder and employee representatives, is not expected to finalize decisions on Thursday, but the confrontation has already begun. IG Metall has vowed to block closures through all available means, while Müller cautioned that further delays risk deeper damage. “The longer we wait, the harder the choices become,” she said. With the board’s deliberations ongoing, Volkswagen’s workforce braces for what both sides describe as the most far-reaching conflict in the global auto industry’s history.
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