Action Day and the Supervisory Board—that's what today is all about at VW

There is a debate at VW in Wolfsburg over new cost-cutting plans. (File photo) / Photo: Moritz Frankenberg/dpa

Here’s what the VW Executive Board wants

Group CEO Oliver Blume had already announced in the spring that he was working on a new “Vision 2030” for the group and intended to significantly tighten cost-cutting measures as part of it. According to “Manager Magazin,” up to 100,000 jobs could be cut worldwide—twice as many as previously planned.

Four VW Group plants in Germany are reportedly even facing closure: Hanover, Emden, Zwickau, and Neckarsulm. According to “Spiegel,” vehicle production there could wind down by the end of 2034.

So far, VW has only confirmed that the Group Executive Board is working “intensively on a future plan for the company’s restructuring,” but did not provide any details. The goal is a “comprehensive transformation.” Once the matter has been referred to the supervisory board, this is to be put into action.

Here’s what the union is planning

IG Metall immediately announced its opposition to the plans and is calling for a day of action today. In Wolfsburg, a rally is planned immediately before the start of the Supervisory Board meeting—right in front of the Executive Board building, where the board will then meet. Further actions are expected at all other Group locations in Germany, including subsidiaries such as Audi, Porsche, and MAN. A motorcade is planned in Stuttgart.

IG Metall President Christiane Benner described the protests as “a clear signal to the executive board: Not with us!” The employees have already done their part, she said, referring to the collective bargaining agreement set to expire at the end of 2024. “We will not accept the constant attacks on our colleagues’ rights without putting up a fight.” Instead, she called for ideas and plans on how to utilize the plants’ full capacity.

According to IG Metall, this does not constitute an industrial action. “These are informational or protest events, not warning strikes,” the statement reads. The peace obligation remains in effect at Volkswagen, so work stoppages are not planned for the time being.

Here’s the situation on the supervisory board

When the supervisory board meets at 2:30 p.m., it is likely to be a heated debate. This is because, in addition to the employee representatives, the state of Lower Saxony has also already expressed its opposition to the plans. Plant closures are not a strategy for the future, according to Lower Saxony’s Deputy Minister-President Julia Willie Hamburg (Greens).

The state holds a 20 percent stake in VW; Minister-President Olaf Lies (SPD) and his deputy, Willie Hamburg, serve on the supervisory board. Together with the ten employee representatives, they hold a majority—currently a significant one, as one of the ten seats reserved for shareholders is currently vacant.

It is therefore considered virtually impossible that the Executive Board’s proposals will secure a majority as they stand. Furthermore, contested votes in VW’s supervisory body have so far been the absolute exception. As a rule, discussions continue until all sides reach an agreement.

That’s how it went during the last dispute

Most recently, a fierce collective bargaining dispute erupted at VW in 2024. On several occasions, IG Metall brought production to a standstill with warning strikes. At that time, too, plant closures and job cuts were on the table. It wasn’t until shortly before Christmas, following a week-long marathon of negotiations, that a compromise was reached. Layoffs for operational reasons were ruled out; job cuts will be achieved primarily through early retirement and severance programs.

Volkswagen has already announced the elimination of 50,000 jobs across the group in Germany by 2030. 35,000 jobs are to be cut at the core brand, with the rest at subsidiaries such as Audi and Porsche. More than 37,000 employees have already signed the relevant agreements.

That’s why VW wants to cut costs again

The cost-cutting measures agreed upon at the end of 2024 were no longer sufficient in light of the worsening business environment, according to Blume. Tariffs, wars, geopolitical tensions, and increasingly fierce competition are creating headwinds, the CEO said.

VW’s previous business model—developing and producing in Europe and selling worldwide—is therefore no longer working. The company must restructure and further reduce costs. And, as Blume announced back in the spring: “We will leave no stone unturned.” He is now presenting the results to the supervisory board.

Action Day and the Supervisory Board—that's what today is all about at VW

Here’s what the VW Executive Board wants

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Here’s what the union is planning

Here’s the situation on the supervisory board

That’s how it went during the last dispute

That’s why VW wants to cut costs again

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