Volkswagen Group CEO Oliver Blume was reportedly greeted with loud boos from unhappy employees at the carmaker’s Wolfsburg headquarters while addressing staff in an effort to build support for the management’s restructuring plan, which could involve up to 100,000 job cuts and possible factory closures across Germany.
As per Automotive News, the meeting was attended by more than 10,000 workers at the brand’s Hall facility and marked the first in a series of town-hall-style gatherings due to be held across the country in the coming days. Blume was joined by VW brand chief Thomas Schäfer, who also presented parts of the plan that has attracted major public attention in recent weeks. According to Automotive News sources present at the meeting, the boos directed at Blume came when the CEO urged employees to “pull together” in support of the restructuring.
During the speech, Blume reportedly explained the need for a further 50,000 job cuts in addition to the 50,000 already agreed with local trade unions, in a bid to bring Volkswagen’s cost base in line with that of its rivals. No factory closures are planned at present, with the executive describing such a move as the “last and most expensive resort.”
Blume has previously spoken about the possibility of seeking partnerships in the defence sector, or shifting production from other markets back to Germany, as a possible way to reduce the overcapacity currently affecting the company’s domestic plants. Even so, management has not yet taken any official step in that direction. Automotive production at the brand’s Osnabrück facility is expected to end as early as next year, while the plants in Emden, Zwickau, Neckarsulm, and Hanover do not yet have a dedicated future plan beyond 2030.
Volkswagen labour leader Daniela Cavallo also reportedly spoke, repeating her confidence in the strength of the German facilities while also making clear how workers view Blume. “Our trust in this company’s executive board, and especially in its CEO Oliver Blume, has been damaged. Not yet beyond repair, but damaged nonetheless,” Cavallo said.
Under Volkswagen’s structure, Blume cannot take such major decisions on his own; labour leaders and the state of Lower Saxony have the power to veto them. Blume is set to get another opportunity to win backing for the proposed cuts on September 4th, though alternative turnaround proposals for the carmaker are reportedly making their way to him.
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