Lower Saxony Premier Urges Compromise Ahead of VW Board Meeting

As Volkswagen's supervisory board prepares to meet on September 4 to discuss a major restructuring plan, Lower Saxony's state premier, Olaf Lies, has called on all parties to bridge their differences. The plan, which could involve tens of thousands of job cuts, has set management against unions and the state government, which holds a blocking minority stake in the automaker.

Lies, a key figure in the negotiations, told journalists on Friday that the pressure to reach an agreement in the coming days is intense. "I strongly urge that we use the time remaining until the next meeting to bring the different positions together," he said, emphasizing the urgency of addressing the business challenges facing Volkswagen, including costly tariffs, falling demand, and growing competition from China.

However, Lies also stressed the broader social and economic responsibilities of the company. "With its sites in Lower Saxony and across Germany, its tens of thousands of employees and their families, and its suppliers and service providers, Volkswagen also bears an enormous responsibility for the wider economy and society," he noted.

CEO Oliver Blume has proposed doubling planned job cuts to as many as 50,000, potentially closing factories and spinning off divisions to slash costs. This has sparked fierce opposition from unions and deep concern from Lower Saxony. Sources indicate that a compromise is likely to focus on the scale of job cuts and the future of at-risk factories.

Lies expressed confidence that a viable solution can be found, saying Volkswagen has historically combined economic prudence with social responsibility, and any solution should be measured against that standard. The executive committee, which includes works council chief and shareholder family representatives, is set to meet on Thursday, a day before the supervisory board meeting, to assess the situation.