Volkswagen's management is heading for a 'major conflict' with its workforce, the IG Metall union warned on Thursday, as Europe's largest carmaker prepares to discuss what could become the most sweeping restructuring in global automotive history. The warning came as workers staged protests outside plants across Germany, with union officials vowing to resist any plans that would eliminate up to 100,000 jobs and shutter four factories.
Thorsten Groeger, an IG Metall official, said workers would not stand by if the company does not change course. The union's chairwoman, Christiane Benner, together with Volkswagen's works council chief Daniela Cavallo, issued a joint statement declaring that if the reported plans come to fruition, 'we would stop them with all our might.'
What Is on the Table?
According to Manager Magazin, citing company sources, Chief Executive Oliver Blume is considering cutting roughly 16% of Volkswagen's global workforce of around 630,000. The plans would also involve closing three Volkswagen plants in Germany—in Hanover, Emden, and Zwickau—as well as the Audi factory in Neckarsulm. This would add to the 50,000 job cuts already agreed with unions at the end of 2024, which were accompanied by a pledge to avoid plant closures in Germany until at least 2030.
Thursday's supervisory board meeting is unlikely to produce an immediate decision. Instead, it could mark the start of months of negotiations between management, unions, and politicians. The board is also expected to review Volkswagen's corporate structure, potentially carving out or spinning off its core Volkswagen brand and components business to simplify the group.
Rather than shutting factories outright, Volkswagen could shift production of China-focused models to underused German sites such as Zwickau—an idea Blume has previously proposed. Another option would be to stop assigning new models to certain plants, gradually ending production instead of closing sites immediately. The company has also suggested that underused factories could eventually be repurposed by defence manufacturers seeking to expand production.
Why Approval Will Be Difficult
The supervisory board normally consists of 20 members split equally between shareholder and employee representatives. However, labour representatives currently hold a majority following the recent resignation of Susanne Wiegand, the former head of defence company Renk. Volkswagen's ownership structure further complicates any restructuring: Lower Saxony, home to the company's Wolfsburg headquarters and six factories, holds a stake large enough to block key decisions.
If ultimately approved, the plans would reduce Volkswagen's global workforce by roughly 15%, surpassing previous job-cutting programmes in the auto industry, including General Motors' reduction of nearly 50,000 jobs during its 2009 bankruptcy. Germany's wider car industry—including BMW, Mercedes-Benz, and their suppliers—has also been cutting jobs and restructuring in response to weaker demand and rising competition.
Volkswagen's struggles are emblematic of broader challenges facing the European auto sector. The company is under pressure from US tariffs, weaker profit margins on electric vehicles, and, above all, fierce competition in China, the world's largest car market. These pressures have forced the carmaker to reconsider its strategy, even as it navigates a complex web of labour and political constraints.
For more on Volkswagen's ongoing challenges, see Volkswagen Faces Crucial Talks on 100,000 Job Cuts and Plant Closures. The broader economic context is also relevant: Global Economic Risks for Late 2026: Oil, Trade, and AI Uncertainty highlights the headwinds facing European exporters. Meanwhile, the Euro Area Under Strain as Recession Risks Mount underscores the fragility of the region's economy.
