Volkswagen is set to face a critical decision as its supervisory board meets to discuss a sweeping restructuring plan that could reshape Europe’s largest automaker. The proposal reportedly includes cutting up to 100,000 jobs and closing four factories in Germany as the company grapples with rising production costs, excess manufacturing capacity, stronger competition from Chinese automakers, and U.S. import tariffs.
CEO Oliver Blume is expected to seek approval for the overhaul despite strong opposition from labor unions and employee representatives. Workers across Germany have staged protests, urging the company to protect domestic manufacturing and jobs. Union leaders argue that the company should focus on expanding production rather than reducing its workforce and factory network.
Volkswagen says the restructuring is necessary to simplify operations, reduce overcapacity, and strengthen its competitiveness in a rapidly changing automotive market. The board’s decision is expected to play a key role in determining the future direction of the company as it navigates the transition to electric vehicles and increasing global competition.
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