Lower Saxony premier urges agreement on VW restructuring before board meeting

Lower Saxony’s Premier Olaf Lies has been urging for a deal on Volkswagen AG’s restructuring plan prior to their board meeting on September 4. The state is the second-largest shareholder of the world’s largest automaker and the supervisory board is set to discuss a plan that could result in tens of thousands of additional job losses.

Lies addressed journalists, urging for the remaining time to bring together differing positions. He highlighted the urgent need to address VW's business challenges, including costly tariffs, falling demand, and competition from China. However, he also emphasized the company's importance to the wider economy and society, given its thousands of employees and their families, as well as suppliers and service providers in Lower Saxony and Germany.

VW CEO Oliver Blume aims to double the planned job cuts to 50,000, possibly closing factories and spin-offs divisions. This has sparked opposition from unions and concern from Lower Saxony, which holds a significant share in the company. The two sides are looking for a compromise that will likely focus on the job cuts and future factory plans.

Lies expressed his conviction in finding a viable solution, stating that VW has always balanced economic prudence with social responsibility.