Volkswagen (VWAGY) is heading into a critical July 9 board meeting as management pushes one of the most aggressive restructuring plans in the automaker's 89-year history.
CNBC reported that CEO Oliver Blume's blueprint could include up to 100,000 job cuts, or roughly 15% of Volkswagen's global workforce. The plan may also involve closing German plants in Hanover, Zwickau and Emden, along with Audi's Neckarsulm site.
Volkswagen is also considering cutting five-year capital spending by 15% to 130 billion, or $148.2 billion, and potentially separating its passenger car and components units. The company is trying to respond to weaker demand, U.S. tariff risk and rising pressure from lower-cost Chinese EV makers.
The problem is execution. German unions control half the supervisory board, while Lower Saxony holds a 20% voting stake and can effectively block domestic plant closures.