VW Board Rejects Blume Turnaround Plan in 12-7 Vote as Unions Resist Deeper Cuts
Updated
Updated · Bloomberg · Jul 11
VW Board Rejects Blume Turnaround Plan in 12-7 Vote as Unions Resist Deeper Cuts
3 articles · Updated · Bloomberg · Jul 11
Summary
Twelve of Volkswagen’s 19 supervisory board members blocked CEO Oliver Blume’s overhaul at Thursday’s meeting, leaving his push for a fundamental restructuring without initial backing.
The rejected plan included more job cuts, plant closures and a possible carve-out of the core VW brand from a group that also owns Audi and controls Porsche.
Labor unions, which wield significant influence on the board, were central to the resistance as Blume tries to force through tougher measures.
The setback comes as Volkswagen battles shrinking market share in China and North America, tariff costs and weak profit margins despite solid EV sales in Europe.