Volkswagen's (VWAGY) restructuring battle could be entering a more serious phase as labor leaders say they have not been included in any plan to cut as many as 100,000 jobs in Germany. The dispute is putting fresh focus on governance tensions at Europe's biggest carmaker, especially as management looks for ways to improve competitiveness.
The pressure comes after Manager Magazin reported that Volkswagen could double its planned job cuts to 100,000 and close four plants in Germany. The works council and IG Metall said top labor representative Daniela Cavallo has been involved in renewed cost-reduction efforts, but any major strategic move would still need approval from Volkswagen's supervisory board.
That could make deeper restructuring difficult for CEO Oliver Blume. Labor representatives currently hold a majority on the supervisory board, Lower Saxony often sides with workers, and the VW law gives the state veto power over key decisions while making it harder to close major German plants. With the board set to meet on July 9, investors may be watching whether Volkswagen can push through cost cuts without triggering a larger labor clash.