Blood on the carpet as Volkswagen tries to head off existential threat

Volkswagen is moving to head off an “existential threat” as its supervisory board meets to review a wide-ranging cost-cutting plan that could reshape operations in Germany. Following a delayed start after 4:30 pm on Thursday, CEO Oliver Blume presented measures that, according to the report, could add up to 70,000 further job losses, on top of 50,000 already agreed in 2024. The plan also contemplates closing up to four German plants within the next five years, with impacts including up to 15,000 roles in technical development, 5,000 in production, and one in four management positions. Ahead of the meeting, IG Metall staged protests outside VW plants, saying the move signals the board will face worker opposition. Analysts described the overhaul as the most radical in Volkswagen’s 90-year history, with the board weighing a €30 billion cost programme, around 12% of group auto-sector turnover, and potential cuts of €50 billion from its research budget by 2031. The report also notes sensitivities involving Lower Saxony and tariff pressures tied to global competition, especially China.