Lower Saxony premier urges agreement on VW restructuring before board meeting

Lower Saxony premier Olaf Lies urged the board to reach an agreement on Volkswagen AG's restructuring plan before their September 4 meeting. The board is set to discuss a turnaround plan that could lead to tens of thousands more job losses. This issue has put VW's management in conflict with unions and Lower Saxony, its second-largest shareholder.

Lies urged to use the remaining time to bring different positions together, acknowledging the urgent business challenges Volkswagen is facing due to tariffs, falling demand, and competition from China. He emphasized the group's responsibility for the wider economy and society, with its sites in Lower Saxony and across Germany, tens of thousands of employees and their families, and suppliers and service providers.

VW CEO Oliver Blume proposed doubling the planned job cuts to 50,000, potentially closing factories and spinning off divisions in a radical cost-cutting drive. This has sparked opposition from unions and concern from Lower Saxony, which holds a blocking minority shareholding. The two sides are seeking a compromise centered on job cuts and future factory plans.

Lies stated his conviction in finding a viable solution, emphasizing that it should be measured against VW's standard of economic prudence and social responsibility. The VW executive committee, including the works council chief, Lies, and members of the Porsche and Piech shareholder families, will meet on Thursday to assess the situation ahead of the supervisory board meeting.