Will Volkswagen Restructuring Plan Founder, Again, On Union Power?

Volkswagen News

Will Volkswagen Restructuring Plan Founder, Again, On Union Power?
GermanyToyotaOliver Blume
  • 📰 ForbesTech
  • ⏱ Reading Time:
  • 50 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 54%
  • Publisher: 59%

Neil Winton has covered the European Auto industry in general and electric cars in particular for Forbes for 11 years. He is based in the U.K. and publishes WintonsWorld.com. Winton was a reporter and editor at Reuters for 33 years. His Reuters assignments included New York and Brussels.

wants to close factories in Germany to bring production in line with sales, but union strength means this will be difficult to achieve and the company may have to at least concede a 4-day work week.

In Germany, union power is incorporated into corporate governance. This is particularly strong at Volkswagen, where unions have half the seats on the supervisory board, and with the help of politicians in its home state and shareholder Lower Saxony, a virtual veto on company policy. VW faces another major hurdle in 2025. It is seen as the most vulnerable to tightening EU CO2 rules which seek to force manufacturers to keep raising the proportion of EV sales compared with ICE ones. Failure incurs swingeing fines, and the spotlight is on VW, according to investment bank UBS

“There is scope for consolidation but looking at the cost of the proposed closure of Brussels with 3,000 workers of about €1.2 billion , the closure costs for larger plants like Emden or Hannover would run to €2.5 billion to €4 billion on our estimates. Aside from resistance from the Works Council and union, we would expect the State of Lower Saxony would oppose such a move,” HSBC Global Research said.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

ForbesTech /  🏆 318. in US

Germany Toyota Oliver Blume HSBC Global Research UBS Reuters Restructuring Lower Saxony Audi

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Volkswagen ID.7 Tourer (2024) review: the best electric Volkswagen yetVolkswagen ID.7 Tourer (2024) review: the best electric Volkswagen yetCAR Magazine UK's first test of the New Volkswagen ID.7 Tourer as VW's new electric space champion hits the road. Full driving impressions, pictures and review
Read more »

Peugeot E3008, An EV Unhappy In The Fast Lane, And The Slow One TooPeugeot E3008, An EV Unhappy In The Fast Lane, And The Slow One TooNeil Winton has covered the European Auto industry in general and electric cars in particular for Forbes for 11 years. He is based in the U.K. and publishes WintonsWorld.com. Winton was a reporter and editor at Reuters for 33 years. His Reuters assignments included New York and Brussels.
Read more »

European Car Sales Growth Petering Out; Problems Loom For 2025European Car Sales Growth Petering Out; Problems Loom For 2025Neil Winton has covered the European Auto industry in general and electric cars in particular for Forbes for 11 years. He is based in the U.K. and publishes WintonsWorld.com. Winton was a reporter and editor at Reuters for 33 years. His Reuters assignments included New York and Brussels.
Read more »

European Demand That EVs Win Looks Fragile As Sales PlateauEuropean Demand That EVs Win Looks Fragile As Sales PlateauNeil Winton has covered the European Auto industry in general and electric cars in particular for Forbes for 11 years. He is based in the U.K. and publishes WintonsWorld.com. Winton was a reporter and editor at Reuters for 33 years. His Reuters assignments included New York and Brussels.
Read more »

Europe Seems To Have Tamed China EV AssaultEurope Seems To Have Tamed China EV AssaultNeil Winton has covered the European Auto industry in general and electric cars in particular for Forbes for 11 years. He is based in the U.K. and publishes WintonsWorld.com. Winton was a reporter and editor at Reuters for 33 years. His Reuters assignments included New York and Brussels.
Read more »

Volkswagen Chief Warns Brand Has 'One, Maybe Two' Years To Get It TogetherVolkswagen Chief Warns Brand Has 'One, Maybe Two' Years To Get It TogetherToday on Critical Materials: VW puts a clock on getting their ship in order, BYD pauses its Mexico plans and Ultium workers in Tennessee join the UAW.
Read more »



Render Time: 2025-02-12 21:19:35