Volkswagen faces board vote on major cost-cutting plan
Volkswagen cost cuts and plant closures could reshape its future in Germany See what the July 9 board meeting could mean for jobs, factories, and investors
Volkswagen is preparing for a decisive supervisory board meeting on July 9 after reports said the company is considering deep cost cuts, including the possible closure of four German plants and up to 100,000 job cuts.
The reported plan would be the most dramatic restructuring in the automaker’s nearly 90year history. It has drawn opposition from German politicians, labor unions, and employee representatives, while the company says any changes must be approved by the relevant governing bodies.
Analysts say Volkswagen’s complex ownership and governance structure could make the process difficult, especially because the state of Lower Saxony holds a significant voting stake. The company is also facing wider pressure from tariffs, competition from Chinese carmakers, and the slow pace of Europe’s auto industry transition to electric vehicles.