VW supervisory board rejects CEO's cost-saving plan

Volkswagen's supervisory board has rejected a cost-saving package proposed by CEO Oliver Blume, according to reports from the "Süddeutsche Zeitung." The vote, which took place during a board meeting at the Wolfsburg plant, saw employee representatives and the state of Lower Saxony vote against the plan.

“

which on factory closures as a supposedly simple solution sets.

With one seat currently vacant on the capital side of the board, the combined opposition of employee and state representatives secured a majority of 12 to 7 votes. Lower Saxony's Minister-President Olaf Lies (SPD) had previously stated the state would not approve any development that relies on factory closures as a "supposedly simple solution." The IG Metall union had also announced its opposition to the austerity measures.

“

With our future plan, we are making the group even more robust and competitive in a globally challenging environment.

While VW did not comment on the specific vote, Blume emphasized that the management board is continuing to drive the company's transformation. He stated that their "future plan" aims to make the group more robust and competitive, even in a challenging global environment. Reports from "Manager Magazin" suggest up to 100,000 jobs worldwide could be cut, double the previously planned figure, with "Bild" reporting an even higher number of up to 120,000. The reports also indicate that four German VW plants in Hannover, Emden, Zwickau, and Neckarsulm are at risk of closure.

“

the most comprehensive realignment in the group's history.