Volkswagen CEO, labour boss dig in ahead of key board meeting

Volkswagen's CEO, Oliver Blume, and labor leaders are standing firm ahead of a critical board meeting next week. The company is planning an extensive restructuring that could double job cuts, close factories, and trim business segments as it aims to boost profits and compete with Chinese automakers. Blume toured Volkswagen's electric vehicle plants in Emden and Zwickau, both at risk, praising employee efforts to cut costs but warning more action is needed.

He emphasized that Volkswagen's costs are higher than European counterparts and that the company must improve to remain competitive. The plans will be debated at a September 4 supervisory board meeting, where labor representatives and Lower Saxony, the company's home state, oppose major job losses. Emden, in Lower Saxony, and Zwickau, in Saxony, are two of the affected factories.

Both lack a business plan beyond 2030, and Osnabrück is also at risk with production set to end next year. Daniela Cavallo, head of Volkswagen's works council, stated that layoffs and closures won't solve issues caused by tariffs, Chinese competition, and weak European demand. Blume, touring sites to garner support, described plant closures as a last resort and vowed to fight for the future of industrial prospects and jobs at Volkswagen locations.