Volkswagen's supervisory board meets today to decide on deep restructuring including four German plant closures and 100,000 job cuts. Unions are pushing back with protests. The outcome will determine the carmaker's cost trajectory and stock direction.
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Volkswagen's supervisory board is meeting today in Wolfsburg, with CEO Oliver Blume pushing a plan to close four German plants and cut 100,000 jobs. Worker protests are underway at roughly 20 sites across the country.
Blume needs to convince the board's powerful labour faction to accept deeper cuts. Sources have said the closures target Hanover, Emden, Zwickau and Audi's Neckarsulm site. The restructuring would be the group's biggest to date.
The push comes after a 2024 deal where unions secured a commitment from management to avoid German plant closures. Since then, VW has sought alternative uses for underutilised sites, including talks with a defence partner for the Osnabrueck factory and the possibility of producing models for the Chinese market in Germany.
Mobility Global data seen by Reuters shows the group's German plants will operate at 81% of standard capacity in 2026, falling to 73% by the end of the decade even after removing Osnabrueck. Zwickau, the best performer among the threatened sites, is forecast at 88% utilisation in 2026 but 42% by 2030.
IG Metall President Christiane Benner, who also serves as deputy chair of the supervisory board, rallied workers ahead of the meeting. "This is a clear message to the board: Not on our watch!" she said in a statement. "In difficult times, we stand together and demand that the group and policymakers come up with ideas and plans to ensure full capacity at our plants and protect us from unfair competition."
The owner families, Porsche and Piech, have seen tens of billions of euros wiped off the value of their core investments. They have pressed for deeper cuts to restore margins.
For investors, today's outcome is a binary event. If Blume secures labour support, the stock could rally on the prospect of lower costs and a leaner footprint. If unions block the plan, VW faces continued cost drag, potential credit downgrade risk, and a management credibility hit. The board's makeup – owner families, unions, and the state government of Lower Saxony – makes any deal fragile.
A decision is expected later today. No deal would leave the company's most ambitious restructuring in limbo, with the next deadline likely the annual earnings call in March.
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