Volkswagen Faces Its Largest Restructuring: Job Cuts, Plant Closures, and Stakeholder Opposition
Key Events in Volkswagen's Restructuring and Corporate History
FRANKFURT, Sept 3 (Reuters) - Volkswagen's supervisory board is scheduled to meet on Friday to vote on the automaker's biggest ever restructuring programme, which has met fierce opposition from unions and shareholder Lower Saxony over planned job and capacity cuts.
Volkswagen, one of Germany's most storied industrial firms, has undergone numerous structural changes through its 89-year history and retains one of the most complex corporate set-ups in the global autos sector.
Timeline of Major Milestones
Below are some key dates:
Early Foundations and Privatization
1937: Establishment of Volkswagen
The so-called Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (Company for the Preparation of the German Volkswagen Ltd) is formally established, which will later be shortened simply to Volkswagen.
1960: Privatization and the Volkswagen Law
Volkswagen — meaning "the people's car" in German — is privatised, with the company's home state of Lower Saxony receiving a 20% stake, a holding it retains today.
The Volkswagen Law is instated as part of the process, giving Lower Saxony an effective blocking minority at annual general meetings and requiring a majority on the supervisory board to push through plant closures.
Shareholder Changes and Expansion
2009: Qatar Becomes a Major Shareholder
Qatar takes a 17% voting stake in Volkswagen, becoming one of its biggest shareholders.
2012: Full Ownership of Porsche AG
Volkswagen becomes the sole owner of Porsche AG after a protracted takeover tussle. Porsche SE, which is controlled by the Porsche and Piech families, becomes Volkswagen's largest shareholder and holds a majority of voting rights.
2019: Traton Listing
Volkswagen lists its trucks division Traton on the stock exchange, keeping a significant majority stake in the company that some investors say prevents effective governance.
Leadership and Labour Developments
2021: Leadership Transition in Works Council
Bernd Osterloh, Volkswagen's long-term works council head and described by some company sources as the most powerful person at the automaker, steps down. Daniela Cavallo takes over, becoming the first woman to hold the influential position.
Recent Restructuring and Market Challenges
2022: Executive Changes and Porsche AG Listing
July — Herbert Diess steps down as Volkswagen CEO after repeated clashes with unions and labour representatives over the group's restructuring needs, with then Porsche CEO Oliver Blume taking over.
September — Volkswagen lists Porsche AG on the stock exchange, keeping a 75.4% stake in the maker of luxury sports cars.
2024: Market Position and Labour Disputes
Volkswagen loses its position as the best-selling auto brand in China, the world's largest auto market, overtaken by local rival BYD.
September — Volkswagen, for the first time in its history, threatens to close German auto plants in response to falling sales in China and Europe as well as high operating costs, leading to a clash with unions.
December — After months of talks and warning strikes, Volkswagen and unions reach a deal to cut up to 35,000 jobs in Germany, marking one of the firm's biggest layoff programmes in its history.
2025: Further Market Decline
Volkswagen falls to third place in China, slipping behind Geely as a local price war hits profits of what once was the group's cash cow.
2026: Largest Restructuring Programme Announced
June — Sources disclose plans for a new restructuring programme — Volkswagen's biggest to date — that could double planned job cuts, result in four plants being shut and a legal carve-out of the group's passenger car and components divisions.
July — Volkswagen says its lineup will be gradually cut by up to half while production capacity will be reduced to 9 million vehicles per year, down from 10 million currently.
September — Volkswagen's supervisory board will meet to discuss the restructuring programme, which has pitted management against unions and Lower Saxony, a conflict that could result in an extraordinary general meeting.
(Compiled by Christoph Steitz. Editing by Mark Potter)
