Lower Saxony rejects Volkswagen plant closures amid cost-cutting reports

Lower Saxony's state government has firmly rejected the possibility of plant closures as part of Volkswagen's potential cost-cutting measures. The state, which holds a 20 percent stake in the automotive giant, declared it will not endorse any strategy that proposes plant closures as a simple solution or undermines the established system of co-determination.

In a joint statement, Lower Saxony's Minister President Olaf Lies (SPD) and Deputy Minister President Julia Willie Hamburg (Greens) asserted their commitment to responsible oversight in their roles on VW's supervisory board. They emphasized that Volkswagen's future success hinges on delivering competitive vehicles, innovative products, efficient synergies, and a clear strategic direction, rather than focusing on further plant closures or job cuts.

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The state of Lower Saxony will not approve any development that relies on plant closures as a supposedly simple solution or questions established co-determination.

This stance comes in response to a report by "Manager Magazin" suggesting that Volkswagen plans to intensify its savings program. The report indicated that up to 100,000 jobs worldwide could be eliminated, double the previously planned number. It also suggested that four German plants, potentially including those in Hannover and Emden, could face closure.

The state government's opposition underscores the importance of maintaining employment and the existing labor relations framework within Volkswagen. Lies and Willie Hamburg stressed that the company must regain strength through its own operational capabilities and product offerings.

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The future of Volkswagen will not be won by focusing on ever new plant closures or ever larger job reduction programs.