Crisis Talks at VW — Calls for a Vision for the Future

As the VW Executive Board continues its tour of the company’s locations to meet with employees, criticism is mounting over a lack of long-term vision. “It is my clear expectation that the Executive Board will ensure a viable plan for the future,” Lower Saxony’s Minister President Olaf Lies told the German Press Agency. “Plant closures and mass layoffs cannot be the solution,” the SPD politician criticized. 

Following CEO Oliver Blume’s announcement that cost-cutting measures would be intensified, there are fears at Europe’s largest automaker that tens of thousands more jobs and four entire sites could be at risk. The powerful works council reacted with outrage and called for special works meetings at a total of nine locations. 

Following the kickoff in Wolfsburg and visits to the plants in Emden and Zwickau—which are considered at risk—representatives of the Executive Board are expected on Thursday at the engine plant in Chemnitz and the Gläserne Manufaktur in Dresden. No vehicles are currently being produced in Dresden. In addition to Emden and Zwickau, there are no competitive plans for the 2030s for the commercial vehicle plant in Hanover and the Audi site in Neckarsulm. 

CEO Blume has repeatedly emphasized recently that this is not an internal VW problem. “The entire auto industry is under enormous pressure,” he said. He cited U.S. tariffs, market developments in China, and several political crises as factors affecting all major manufacturers and suppliers alike. 

According to industry expert Stefan Bratzel of the Center of Automotive Management (CAM), Volkswagen must also achieve a “quantum leap” as it looks to the future. Increased efficiency and an organizational restructuring to enable greater speed and flexibility are necessary. “On the other hand, entirely new areas of growth must be tapped in order to survive in the long term during this disruptive phase of the industry,” said Bratzel. The company faces major challenges. “This won’t happen without major conflicts,” Bratzel predicted.

Minister President Lies recalled that the automaker’s strength has always been its ability to find solutions together, especially in difficult times. “Volkswagen has great products and technology, and so we must now restore calm to the debate so that this company can once again focus on what it actually does best: building outstanding, innovative vehicles,” Lies said.