Lower Saxony Blocks VW's Radical Job-Cut Plan as Works Council Vows 'All-Out Resistance'

Volkswagen’s boldest restructuring blueprint yet — a proposal to shed up to 100,000 jobs and shut four German factories — already looks politically dead in the water. The state of Lower Saxony, which holds 20 percent of Volkswagen’s voting rights, has flatly rejected any plant closures. Together with the company’s labour representatives, the state commands a blocking majority on the supervisory board, making the so-called "Zielbild 2030" plan nearly impossible to implement, according to analysts.

CEO Oliver Blume’s internal plan, revealed by German media on Friday, targets deep cuts across the carmaker’s global workforce. Four German sites are reportedly on the chopping block: Hannover, Zwickau, Emden, and Neckarsulm. The scale of the proposed reduction dwarfs a previously agreed figure of 37,000 to 50,000 jobs, which union leaders thought had already been settled.

IG Metall and Volkswagen’s works council reacted with fury. In a joint statement, Christiane Benner (head of IG Metall), Daniela Cavallo (works council chair), and regional leader Thorsten Gröger said they would resist the plans "with all our might." They accused the board of poor communication and insisted such a massive cull violated existing agreements. "We will fight for every site," they declared.

The radical plan is driven by severe financial headwinds. Volkswagen is grappling with a broad profit slump, falling sales in China — its biggest market — and the threat of new US tariffs. One emblematic failure: the ID.Buzz electric van sold only about 30,000 units in 2025, far below the original target of 120,000.

Despite the deepening crisis, the labour side holds strong cards. Lower Saxony’s opposition, combined with the union’s guaranteed seats, means any forced closures would need to overcome a legal and political mountain. The next formal showdown is set for July 9, 2026, when the supervisory board meets to discuss strategy. Until then, observers expect intense negotiations between management and stakeholders, all aimed at avoiding an all-out confrontation.

en | boerse | 69638702 |