Volkswagen CEO aims to finalize cost-saving plan by year-end

Volkswagen CEO Oliver Blume is pushing to have the company's new cost-saving plan approved by the supervisory board before the end of 2026. Blume expressed confidence that significant progress would be made on the package by year-end, stating, "We assume that we will be much further along by the end of the year."

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We assume that we will be much further along by the end of the year.

The proposed savings measures were first presented to the VW supervisory board two weeks ago. However, the plan encountered opposition from employee representatives and the state of Lower Saxony, which holds a significant stake in the automaker. The details of the plan remain sensitive, but reports suggest it could affect up to 50,000 jobs and place four Volkswagen plants at risk.

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There were very constructive, but also controversial discussions.

Blume acknowledged that the initial supervisory board meeting involved "very constructive, but also controversial discussions." He noted that a comprehensive decision could not be reached at that time. A follow-up meeting is scheduled for September, and Blume anticipates additional sessions will be necessary throughout the year due to the magnitude of the proposed package.

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Now it's about the big framework that we agree on there.

"Now it's about the big framework that we agree on there," Blume said, emphasizing the need to establish the overall direction for the cost-saving initiative. He remains optimistic about reaching an agreement by year's end, stating, "I am firmly convinced that we must do that this year."

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I am firmly convinced that we must do that this year.