German State Premier Calls for Joint Action to Prevent Volkswagen Plant Closures
Stakeholder Collaboration and Challenges Facing Volkswagen
By Rachel More
Background: Volkswagen's Struggle to Avoid Plant Closures
BERLIN, Aug 24 (Reuters) - 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.
Importance of the Automotive Industry in Lower Saxony
"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.
Leadership and Supervisory Board Dynamics
Role of State Premier Olaf Lies and Supervisory Board
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.
CEO Oliver Blume's Restructuring Proposals
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.
Supervisory Board's Response and Upcoming Meeting
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.
Workers' Perspective and Future Outlook
Works Council's Stance on Plant Closures
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.
Concerns About the Company's Direction
"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?"
(Reporting by Rachel MoreEditing by Tomasz Janowski and Lisa Shumaker)
