Volkswagen’s stakeholders were urged to work together on solutions to the automaker’s restructuring challenges as CEO Oliver Blume warned of up to 50,000 additional job cuts to improve competitiveness.
Lower Saxony’s State Premier Olaf Lies, a supervisory board member, emphasized the need for joint action during a visit to Volkswagen’s factory in Hanover. Lies stated that Lower Saxony, a key automotive region, must retain its industrial base, adding, "Lower Saxony is automotive country ... and this must remain so."
The call for collaboration follows Blume’s warning that Volkswagen requires further cost reductions to counter competition from China and the financial impact of U.S. tariffs. The CEO has already secured agreement on 50,000 job cuts across the group, with five facilities potentially facing closure, including the Hanover plant.
Workers’ assemblies scheduled for this week will provide staff their first opportunity to question Blume directly about the restructuring plans. Works council chief Daniela Cavallo reiterated opposition to plant closures or compulsory redundancies, acknowledging the severity of the challenge.
The supervisory board has blocked key elements of Blume’s restructuring proposals, complicating efforts to finalize the plan. A supervisory board meeting is scheduled for September 4, according to sources familiar with the matter.
