Volkswagen Group Chief Executive Oliver Blume is facing growing opposition to a proposed restructuring plan after the company’s Supervisory Board and Works Council reportedly raised concerns over measures aimed at reducing costs and improving long-term competitiveness.
According to German media reports, Blume presented a strategic roadmap for the group through 2030 during a recent Supervisory Board meeting. The proposal reportedly outlines additional cost-cutting measures, including potential plant closures and workforce reductions.
Reports indicate that the plan did not secure majority backing during an initial Supervisory Board vote, setting the stage for further discussions over the company’s restructuring strategy.
Cost-Cutting Plan Reportedly Includes Plant Changes
German publications Manager Magazin, Der Spiegel and Handelsblatt reported that an internal presentation, referred to as the “Group Target Picture,” proposes significant changes to Volkswagen’s manufacturing footprint.
According to the reports, the plan includes the possible closure of four production sites in Germany by the early 2030s and the reduction of up to 100,000 jobs globally.
The facilities cited in the reports include Volkswagen’s plants in Zwickau, Emden and Hanover, along with Audi’s factory in Neckarsulm.
Volkswagen has not publicly confirmed the details of the reported internal document.
Employee Representatives Voice Concerns
The reports also said Volkswagen’s Works Council has criticized the proposed restructuring and intends to raise the issue during employee meetings.
According to Manager Magazin, employee representatives had requested that Blume address the workforce regarding the reported plans.
The state of Lower Saxony, one of Volkswagen’s largest shareholders, also holds representation on the Supervisory Board.
CEO Points to Alternatives
In an interview with Bild am Sonntag, Blume said improving competitiveness remains a priority but suggested alternatives to plant closures could be considered.
“There are smarter solutions than shutting down plants.”
He also said cost-saving measures implemented at German production facilities had already delivered results.
“We were able to reduce our factory costs in Germany by an average of 20 percent last year alone. A significant improvement.”
Blume did not elaborate on what alternatives could replace plant closures.
Electric Vehicle Plants Among Sites Reportedly Under Review
The reported restructuring would affect several facilities that currently manufacture Volkswagen Group electric vehicles.
The Zwickau plant produces models including the Volkswagen ID.3, ID.4 and ID.5, as well as the Cupra Born and Audi Q4 e-tron.
Emden manufactures the ID.4, ID.7 and ID.7 Tourer, while Hanover builds the ID. Buzz and ID. Buzz Cargo alongside Volkswagen Commercial Vehicles’ T-Series models.
Audi’s Neckarsulm facility primarily produces combustion-engine and hybrid vehicles, while its Böllinger Höfe production line manufactures the battery-electric Audi e-tron GT.
According to previous company announcements, production capacity at both Zwickau and Emden has already been reduced as Volkswagen adjusts output to market demand.