Volkswagen seeks to restructure amid China uncertainty | Northwest Arkansas Democrat-Gazette

Volkswagen’s board has approved a sweeping restructuring, reflecting how uncertainty in China is reshaping Germany’s auto industry. The plan, announced Thursday in Frankfurt, is expected to eliminate 50,000 jobs and likely shutter as many as four German plants where manufacturing costs can no longer compete. The decision follows employee-representative concerns, including a rejection of CEO Oliver Blume’s earlier proposal in July, amid Volkswagen’s worker-friendly governance structure and Lower Saxony’s influence. Deutsche Bank analysts called the outcome “much better than feared,” noting it eases investor worries about whether Volkswagen can make difficult changes. Volkswagen shares rose 8% Friday. The company points to fast market shifts in China, where dozens of competitors launched 500 new models this year as prices fall.