Volkswagen is starting a restructuring phase considered “the most radical transformation” in the group’s history. CEO Oliver Blume announced the cut of about a quarter of the managers during a visit to the Emden plant, one of the sites considered most at risk of closure. At the plant, where the ID.7 and ID.4 models are currently produced, there would be no guarantee of manufacturing continuity beyond 2030. Blume also invited all sectors to contribute to the effort, emphasizing that the strategy can only succeed if tackled “together”.
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Is Volkswagen cutting a quarter of its managers?
The cut to the managerial staff is part of the 2030 strategic plan presented in spring but then rejected. The supervisory board will vote on September 4, and is called to decide whether to proceed with this approach. Besides Emden, Zwickau, Hannover, and Neckarsulm would also be without a defined industrial path after 2030. While in various meetings with workers Blume did not confirm closures nor clearly indicate replacement products. At the heart of the crisis, according to La Stampa, are the drop in sales in China and sector difficulties. In Frankfurt, the stock would have lost about 30%, while the CEO acknowledged cost pressures, stating that today labor costs more than double compared to comparable European sites.
Production costs too high
Internal reactions, however, show already shaken confidence. The works council, led by Daniela Cavallo, spoke of “compromised trust” towards the board of directors, contesting the lack of transparency. From Osnabrück, where the T-Roc Cabriolet is made, a relaunch project could also start with the conversion of the plant to defense logistics as part of negotiations with the company Rafael. The most delicate point remains: decisions on the fate of the plants are not final and the supervisory board will have to confront workers and Lower Saxony, which holds the majority of the two-thirds required by Volkswagen law. Cavallo reiterated that a vision for the future cannot be based only on sites, labor costs, and staff cuts. Blume has so far ruled out that the commitment to at-risk plants will wane, while indicating closures as an “extreme” option and promising to seek partners, investors, and new industrial solutions.
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