Volkswagen's proposed overhaul has ignited a maelstrom of protests across Germany, as the carmaker's supervisory board weighs radical transformation plans that could slash up to 100,000 jobs and shutter several factories. The demonstrations, organised by the influential staff union IG Metall, are targeting not just VW's core manufacturing sites but also facilities producing for Audi, Porsche, and Man – a clear indication of the opposition to these measures.
The protests involve shop stewards and union council members from 18 VW sites, including its Wolfsburg headquarters. Christiane Benner, chair of IG Metall, has stressed that these actions send a "clear signal to the board" ahead of their review of the dramatic plans – leaked to the media last month.
The contentious proposals, developed by CEO Oliver Blume, reportedly involve closing four German plants: Hanover, Emden, Zwickau, and Audi's Neckarsulm site. This could be accompanied by an additional 50,000 job cuts. Beyond these immediate measures, VW is reviewing its corporate structure, potentially carving out or spinning off its core brand division and components technology business to simplify operations.
This critical board meeting is a make-or-break moment for the German economy, given Volkswagen's significant role. The carmaker directly employs over 650,000 people across its brands – including Bentley, Skoda, Seat, and Cupra – while the wider German car industry indirectly supports around 3 million jobs. The sector has faced increased competition from Chinese manufacturers and the challenging transition to electric vehicles.
The approval process for such significant changes is complex, involving a two-thirds majority vote from the supervisory board under the 'Volkswagen Act'. However, given the union's strong opposition, securing this majority for plants covered by the law would be almost impossible. Nevertheless, two of the at-risk plants – Zwickau and Neckarsulm – are not subject to the Act, though any attempts to close them would likely spark substantial resistance from unions and local politicians.
If accepted, these proposals will trigger months of negotiations with unions, highlighting the delicate balance between employer and employee interests. The current composition of the supervisory board, where labour and workers' representatives hold 10 seats against 9 for shareholder representatives (out of 20 total seats), underscores the significant influence of employees in this decision-making process.