Volkswagen board to discuss turnaround plan on Sept. 4

  • Volkswagen's supervisory board will discuss management's turnaround plan on Sept. 4.
  • Management proposes as many as 50,000 job cuts, alongside possible factory closures and divisional spin-offs.
  • Lower Saxony and labor representatives are negotiating with management ahead of the board meeting.

Volkswagen's supervisory board is due to discuss the automaker's 40-point turnaround plan on Sept. 4 as management, labor representatives and Lower Saxony negotiate over restructuring. Chief Executive Oliver Blume wants to double planned job cuts to as many as 50,000, potentially close factories and spin off divisions, while the state and unions oppose the scale of the measures. Lower Saxony Premier Olaf Lies urged the parties to bridge their differences before the meeting, citing Volkswagen's economic and social importance. The company is under pressure from costly tariffs, falling demand and intensifying competition from China. Labor representatives and Lower Saxony control 12 of the 20 supervisory board seats, with one seat vacant, and can block the plan. If rejected, management could seek an extraordinary shareholder meeting as early as October. Lower Saxony holds a 20% voting stake, while Porsche SE holds 53.3%, Qatar 17% and other shareholders 9.7%; potential reliance on Article 111 of Germany's Stock Corporation Act could trigger a legal dispute over voting thresholds. The executive committee is scheduled to meet on Sept. 3, with negotiations likely to focus on job cuts and factories at risk.

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