Lower Saxony premier urges agreement on VW restructuring before board meeting
The talks center on job cuts, factory closures and spin-offs as Volkswagen faces pressure from tariffs, weak demand and China competition.
- On Friday, Lower Saxony Premier Olaf Lies reported "heavy pressure" on all sides to reach a Volkswagen restructuring agreement before the supervisory board convenes on September 4, 2026.
- Chief Executive Oliver Blume proposed doubling planned job cuts to as many as 50,000 and potentially closing factories and spinning off divisions to slash costs amid falling demand, costly tariffs, and competition from China.
- This radical cost-cutting drive sparked fierce opposition from unions and strong concern from Lower Saxony, which holds an effective blocking minority shareholding in Germany's largest automaker.
- On Thursday, the executive committee, including Lies and members of the Porsche and Piech families, will convene to assess the situation ahead of the supervisory board session.
- Lies urged parties to "bring the different positions together," emphasizing that Volkswagen bears an "enormous responsibility" for its tens of thousands of employees and the wider German economy.
11 Articles
11 Articles
In the power struggle at Volkswagen, the Supervisory Board must have reached an agreement by next week. Lower Saxony's Prime Minister is now addressing the parties involved.
Before the next Supervisory Board meeting on 4 September, Lower Saxony's Prime Minister Lies called for a constructive solution to the restructuring of Volkswagen. He said this in front of journalists a week before the Supervisory Board meeting.
Volkswagen is heading for a dispute in the Supervisory Board: Olaf Lies demands a sustainable renovation – without unilateral factory closures.
Lower Saxony Prime Minister Olaf Lies, a key figure in the fight to reach an agreement on Volkswagen's restructuring plan, said there was intense pressure on the parties to reach an agreement in the coming days.
Niedersachsen's Prime Minister urges a willingness to compromise before the VW Supervisory Board meeting on 4 September. "It must succeed."
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