Volkswagen Group CEO Oliver Blume is preparing for a pivotal supervisory board meeting next week as his sweeping restructuring plan faces growing resistance from employees and stakeholders. The proposal, which includes significant personnel reductions and potential factory closures, aims to address structural challenges within the German automaker's operations.
Blume's plan has drawn opposition from Volkswagen's workforce and key shareholders, including the State of Lower Saxony, which holds a significant stake in the company. In contrast, the plan has received backing from Volkswagen's founding families, highlighting internal divisions over the direction of the restructuring effort.
Ahead of the meeting, representatives of workers and the State of Lower Saxony have drafted two rival restructuring proposals, though their specific contents remain undisclosed. Volkswagen's supervisory board, works council, and the State of Lower Saxony have declined to comment on the alternatives or the broader restructuring debate.
The conflict comes as Blume undertakes a factory tour across German plants this week, engaging with more than 10,000 workers at the company's headquarters in Wolfsburg. The tour follows a March 2025 press conference where Blume first outlined his restructuring vision, which has since faced resistance in a July supervisory board meeting.
Volkswagen's stock (VOWG) rose 0.65 euros, or 0.86%, to 76.30 euros on August 21, reflecting investor sentiment amid the ongoing corporate governance challenges.
