VW Says Half of Global Job Cuts Will Come From Germany

Summary

William Wilkes reports on Volkswagen CEO Oliver Blume telling Wolfsburg workers that roughly half of additional job reductions must come from Germany, with possible cuts up to 140,000 under discussion. German governance gives unions and Lower Saxony a blocking role, so Blume must negotiate voluntary redundancies and alternative plant plans. Wilkes says Volkswagen and many global automakers face a difficult few years from US tariffs, Chinese competition, and declining China sales, making substantial margin improvement hard.

• Volkswagen CEO Oliver Blume says roughly half of additional job cuts must happen within Germany.
• The Wolfsburg worker meeting ended with heated words and damaged trust, but possible landing ground exists around voluntary redundancies and alternative plant plans.
• German corporate law requires supervisory board sign-off, and unions plus Lower Saxony can block major restructuring.
• Volkswagen faces US tariffs, new Chinese competitors in Europe, and declining sales in China.
• Union leaders called Volkswagen's 8-10% margin target unrealistic.
• Wilkes says VW and many global automakers will struggle to lift margins substantially in the next few years.