Volkswagen overhaul puts Lower Saxony premier in bind over 100,000 layoffs

  • Olaf Lies backed Volkswagen’s restructuring plan despite political opposition in Lower Saxony.
  • More than 100,000 layoffs could result across Volkswagen under the overhaul.
  • Lower Saxony holds a 20% Volkswagen stake and appoints two supervisory board members.

Volkswagen’s biggest restructuring in history has forced Lower Saxony premier Olaf Lies to support potentially more than 100,000 layoffs while managing rising political pressure from the far-right Alternative für Deutschland, or AfD. The state, which owns a 20% stake in Volkswagen and is home to its headquarters and six plants, is holding municipal elections this Sunday. Lies, a member of Volkswagen’s supervisory board and leader of the state’s co-ruling Social Democratic Party, said rejecting the deal could have exposed the carmaker to even greater risks as it faces Chinese competition and U.S. tariffs. The agreement includes another 50,000 layoffs under current cost targets and preserves the state’s influence, while leaving four plants at risk of closure in the 2030s. Analysts expect at least two of those plants to close, with the political and labor conflicts likely to intensify through next year’s election campaign.

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Volkswagen overhaul puts Lower Saxony premier in bind over 100,000 layoffs - CoinPost Terminal