Volkswagen supervisory board approves restructuring plan amid crisis

Volkswagen’s supervisory board has unanimously approved management’s plan to steer the automaker through what the company describes as an existential crisis.

The decision creates the conditions for Volkswagen and its brands to become more efficient, competitive and focused on the future, the company said after a meeting of the board’s presidium. Management and the supervisory board called implementation of the controversial plan essential to preserving Volkswagen’s competitiveness over the long term.

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The future plan creates the conditions to position the Volkswagen Group and its brands to be more efficient, competitive and future-oriented.

Europe’s largest automaker has seen profits fall sharply. Sales have also declined in China, once Volkswagen’s flagship market, while the company has fallen behind technologically. The group includes Audi and Porsche and reported annual revenue of 322 billion euros, with more than 650,000 employees worldwide.

Plant closures and job cuts have repeatedly been discussed as Volkswagen confronts the downturn. Porsche welcomed the supervisory board’s decision and said it intended to continue supporting the transformation efforts of the management of Volkswagen AG, its core holding.

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and intends to continue supporting the transformation efforts of the management of its core holding, Volkswagen AG.