Volkswagen faces pivotal talks over plan to cut 100,000 jobs and shut German factories
Volkswagen's management will present a sweeping restructuring plan to its supervisory board on Thursday, including potential closure of four German plants and cutting up to 100,000 jobs globally. The proposals face strong opposition from unions, who have called for protests, and require approval from a board where labour representatives hold a majority.
Crucial day for Volkswagen's future
Thursday's supervisory board meeting could determine the fate of Europe's largest carmaker. Volkswagen's CEO Oliver Blume plans to present a wide-ranging restructuring that includes closing four German plants and cutting up to 50,000 additional jobs on top of the 50,000 already planned by 2030.
The plan reportedly involves closing plants in Hanover, Emden, Zwickau and Audi's Neckarsulm site. Management is also considering spinning off the core Volkswagen brand and components business to simplify the group. Another option is to repurpose underused factories for defence production.
Strong opposition
IG Metall union and the works council have vowed to fight the plans with all their might. Protests by VW workers are scheduled across Germany on Thursday. The supervisory board has 20 members, but after a shareholder representative resigned, labour representatives now hold the majority. Additionally, the state of Lower Saxony, home to VW's headquarters, holds a blocking minority stake, complicating approval.
Why Volkswagen says it must act
The company is under pressure from US tariffs costing €5 billion annually and has lost ground in China, where deliveries fell to their lowest since 2011. Blume has stated the situation is critical, saying the company must change or die. He warned that Chinese manufacturers are building highly efficient plants in Europe, and Volkswagen cannot compete with underutilised factories.
The outcome of these talks will likely shape the future of Europe's biggest carmaker.
