VW's CEO just survived the fight that sank his predecessors
Volkswagen's CEO Oliver Blume overcame the obstacle that took down his predecessors, securing a major restructuring plan with a vote of 20 to nothing. The supervisory board, which has worker representatives holding half the votes, along with a German state owning a fifth of the company, made this decision possible. This is the fourth CEO to face this hurdle since 2006, each promising to cut costs in Germany yet leaving before completion.
Despite the European carmaker's challenges, including the 2015 diesel scandal, Blume's restructuring plan includes significant cuts in the model portfolio, operating margin targets, and capital spending. Crucially, the board also agreed to limit its own voting rights, changing the governance structure for the first time in 20 years.
This change, while not removing worker representation, sets a higher threshold for major decisions, potentially allowing the plan to be executed more effectively.
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