Volkswagen Group’s restructuring plans face resistance from labor representatives and regional stakeholders as CEO Oliver Blume warns that up to 100,000 job cuts may be necessary to restore competitiveness. The proposed reductions include an additional 50,000 positions on top of 50,000 already agreed across the group, according to Blume’s assessment.
Five facilities, including the Volkswagen factory in Hanover, are at risk of closure as the company seeks to reduce costs amid intensifying competition from Chinese automakers and the financial burden of U.S. tariffs. The proposed job cuts and plant closures have drawn opposition from Works Council Chief Daniela Cavallo, who has reiterated her stance against compulsory redundancies and facility shutdowns.
State Premier of Lower Saxony Olaf Lies emphasized the need for collaborative solutions during a Monday address at the Hanover plant. "Lower Saxony is automotive country ... and this must remain so," Lies stated, adding, "Now it is important to me that we find joint solutions."
Workers’ assemblies are scheduled to begin this week, providing employees their first opportunity to question Blume directly about the restructuring proposals. The supervisory board, which includes representatives from labor, owner families, Lies, and Cavallo, has blocked key elements of the plan. A meeting of the supervisory board is set for September 4, according to sources familiar with the matter.
Volkswagen’s leadership argues that the measures are essential to address structural challenges, including rising costs and market pressures, but the scale of opposition suggests significant hurdles remain before any final decisions are made.
