Meeting of the Volkswagen Supervisory Board in Wolfsburg to examine the new restructuring plan of the managing director Oliver flowerOn the table are the possible closure of four German plants, new job cuts, and a profound overhaul of the industrial and organizational model of Europe's largest automotive manufacturer. The negotiations are continuing in a climate of strong tension. At the group's main German sites, in fact, Protests organized by Ig Metall are underway, while in Wolfsburg hundreds of workers demonstrated with union flags, whistles, and a banner reading "strong together." The unions expressed anger over the Blume plan: "There's a risk of a major social conflict."
The most important indications could arrive only in the next few hours. One point, however, remains uncertain: whether the council will hold a formal vote on the most controversial points today. The meeting could simply open a negotiation destined to continue for months between management, unions, shareholders and political representatives.
Four German factories are at risk of closure
The plan attributed to Blume includes a significant reduction in production capacity in Germany. According to rumors circulating in the last few hours, production in Plants in Zwickau and Emden could be closed by 2031The following year it would be the turn of the site of the commercial vehicles from Hannover, while in 2034 could be Audi plant in Neckarsulm shut down. In the four plants, a total of about 40 thousand peopleThe project would also include another 50 cuts by 2030, which would add to the reductions already planned and bring the total potential to around 100 jobs worldwide.
For Volkswagen it would be the most extensive restructuring in its recent historyBy the end of 2024, the group had already reached an agreement with the unions to reduce its workforce in Germany by 35 by 2030, through coordinated layoffs and without direct plant closures. The new scenario would challenge that balance, opening a much more difficult dispute.
The company has confirmed the need to address excess capacityA spokesperson explained that Volkswagen is reducing complexity, focusing investments on strategic technologies, and simplifying corporate structures. "And yes, we will also have to reduce excess capacity," he said.
China, tariffs and overcapacity push Volkswagen to change
The plan is based on worsening industrial and trade conditions. Volkswagen faces growing pressure from Chinese competitors, a slowing market in China, US import tariffs, and high labor and energy costs in Europe. model The momentum that has fueled the group's expansion for decades appears increasingly difficult to maintain. During its peak growth years, Volkswagen produced nearly 11 million vehicles annually and employed approximately 670 people. Today, volumes remain lower, while the German production network continues to be sized to meet demand levels that have never recovered since the pandemic.
According to the data of Global MobilityIn 2026, the group's German automotive plants will operate at an average of 81% of their standard capacity. By the end of the decade, this figure could drop to 73%, even after the planned withdrawal of the Osnabrück plant from the production network. The most delicate case is that of ZwickauThis year, the site is expected to operate at 88% capacity, the highest percentage of the four plants at risk, but by 2030, utilization could drop to 42%, partly due to the transfer of ID.3 production to Wolfsburg.
Blume aims to bring the Group operating margin to reach 9% by 2030, more than tripling the current level. The plan would also include a reduction in investments from €180 billion to €135 billion over the period 2027-2031. Part of the production could also be relocated from German plants to Eastern European sites, such as Bratislava and Győr, where costs are lower.
Unions and Lower Saxony raise the wall
Implementation of the plan clashes with Volkswagen's particular governance structureThe supervisory board includes representatives of the Porsche and Piëch families, the workers, the state of Lower Saxony, and the other shareholders of the group. A system of balances that makes it difficult to pass the most controversial decisions without compromise.
The workers' component currently has ten seats, while the shareholder front occupies nine following Susanne Wiegand's withdrawal. Blume must therefore convince at least some of the union representatives to get the green light for his project. Ig Metall has mobilized its employees in around twenty of the group's plants, also involving the Audi, Porsche and Man sites. The president of the union, Christiane Benner, addressed a message to the top management: “Not under our noses”. According to Benner, the workers have already made sacrifices significant and cannot pay for the mistakes of recent years. "In difficult times, we remain united and ask the group and politicians for ideas and projects to ensure full utilization of our facilities and protect us from unfair competition," he said.
The government of Lower Saxony also, which holds 20% of Volkswagen's voting rights, has come out against the closures. Rumors that the state is ready to accept the divestment of some sites have been called "total nonsense" by a government source. The so-called Volkswagen Law It also requires a two-thirds majority for certain decisions regarding the plants. This makes it very difficult to proceed against the joint opposition of the unions and Lower Saxony. Zwickau and Neckarsulm are not directly covered by this protection, but their closure would still provoke a strong political and social backlash.
The council opens a negotiation destined to last
The ongoing meeting in Wolfsburg could represent above all thestart of a long debateIt seems unlikely that the entire plan will be approved in a single day, while it is not excluded that the most explosive issues will be postponed or not put to the vote immediately. The restructuring does not only concern the factories and employment. Blume is also reportedly evaluating a review of the corporate structure, with greater autonomy for some divisions and a possible separation between the main brand, the components sector and other activities of the group (like the jewels of the Ducati and Lamborghini groups). A transformation that could also affect Lower Saxony's influence in future industrial decisions.
Meanwhile, alternative solutions are being studied for sites destined to lose automotive production. Among the the hypothesis includes the sale to companies in the defense sector, a route already considered for Osnabrück, where Volkswagen has been seeking an industrial partner for some time. However, no definitive agreements have been reached at this time.
The supervisory board must therefore strike a balance between the need to reduce costs and the desire to defend Germany's industrial influence. Any official statements are expected at the end of the meeting, but the debate over Volkswagen's future is set to continue well beyond today.
