Volkswagen AG’s management said it plans to cut the carmaker’s sprawling model lineup by as much as half, a limited savings push after a supervisory board meeting that stopped short of agreeing on deeper workforce reductions.The proposals follow a showdown at Thursday’s supervisory board meeting, where Chief Executive Officer Oliver Blume had planned to push for doubling job cuts to 100,000 and closing four plants in Germany. Details of the potential measures had leaked through ahead of the meeting, irking VW’s powerful labor representatives. VW’s ongoing efforts to cut jobs and capacity weren’t enough “in the current economic and political environment,” Chief Financial Officer Arno Antlitz said late Thursday in a statement. The decision follows weeks of tension with labor leaders and politicians over proposals to eliminate more jobs, shutter sites and carve out the VW brand, according to people familiar with the discussions.Early indications from the labor side, which holds half the supervisory board seats, didn’t indicate any easing in the impasse.“Enough is enough, this is the last straw,” said Daniela Cavallo, the top labor representative, said in statement, delivering an ultimatum for Blume to address workers by Friday or face extraordinary works meetings across Volkswagen after the summer break.Volkswagen’s 2024 pact with workers already calls for more than 35,000 reductions at the VW brand in Germany by 2030, but management has argued that worsening conditions in China, Europe and the US mean those savings are no longer enough.Any restructuring at Volkswagen is difficult because of the company’s complex governance, where labor representatives hold half the seats on the supervisory board and the state of Lower Saxony has significant influence. More stories like this are available on bloomberg.comPublished on July 10, 2026