German state leader urges joint action to avert Volkswagen plant closures

Volkswagen's stakeholders must work together ​on solutions for the auto ‌group in order ​to shield industry in its home state, the state premier of Lower Saxony said on Monday, as the company ‌tries to avoid plant closures. "Lower Saxony is automotive country ... and this must remain so," State Premier Olaf Lies said at the VW factory in Hanover, one of five belonging to the ‌group that are facing possible closure.

Lies, who sits on the company's supervisory board together with ‌the owner families and labour representatives, spoke ahead of a series of workers' assemblies this week, during which staff will have their first chance to question CEO Oliver Blume on his proposed restructuring. Blume has warned ⁠that ​some 50,000 job cuts ⁠are needed to make the carmaker competitive, on top of 50,000 already agreed across the group, which is ⁠battling to cut costs to address Chinese competition and billions in U.S. tariff costs.

The supervisory board ​has blocked key elements of his restructuring and is next set to meet ⁠on September 4, according to sources familiar with the matter. "Now it is important to me that we find ⁠joint ​solutions," Lies said.

Works council chief Daniela Cavallo, who speaks on behalf of Volkswagen's German workforce and also sits on the supervisory board, said the scale of the challenge ⁠was clear but reiterated her opposition to plant closures or compulsory redundancies. "A programme for the ⁠future can't be ⁠created or sustained simply by talking about reducing labour costs, cutting staff, and questioning the viability of locations," Cavallo said in Hanover. "Where is ‌our company ‌actually headed?"