Volkswagen’s stakeholders were pressed to collaborate on solutions to avoid plant closures as the automaker navigates a sweeping restructuring plan. State Premier Olaf Lies of Lower Saxony, a key shareholder and supervisory board member, emphasized the state’s automotive identity and called for unified efforts to address the challenges facing the company.
The call comes ahead of employee assemblies at Volkswagen’s facilities, including its Hanover plant, where workers will have their first opportunity to question CEO Oliver Blume about the proposed measures. Blume has outlined plans to reduce the workforce by up to 100,000 jobs—50,000 additional cuts beyond the 50,000 already agreed upon across the group—to improve competitiveness.
The restructuring is driven by intensifying competition from Chinese automakers and the financial strain of U.S. tariffs. Volkswagen’s supervisory board has already blocked key elements of the plan, with a decisive meeting scheduled for September 4, 2026. Daniela Cavallo, head of the works council and employee representative, acknowledged the scale of the challenge while reiterating opposition to plant closures or forced layoffs.
Lies stressed the urgency of finding joint solutions, stating that Lower Saxony must remain an automotive state. The Hanover facility is one of five group plants facing potential closure under the proposed restructuring, underscoring the stakes for both workers and regional stakeholders.
