Volkswagen's labour representatives on the supervisory board blocked a sweeping restructuring plan at a meeting on Thursday, Reuters reported on Friday, citing company sources.
This comes as Europe's largest carmaker wrestles with falling profits, rising costs and competition. Volkswagen said on Friday that its global vehicle deliveries fell 8.6% year on year in the second quarter, a steeper decline than in the previous quarter.
The company's share price was down by 0.6% around noon in Europe. The focus, however, remained on the restructuring proposals that divided the supervisory board.
As the board met at Volkswagen’s headquarters in Wolfsburg on Thursday, IG Metall, one of Germany’s largest trade unions, organised coordinated protests across the country to stop a plan that reportedly includes up to 100,000 job cuts worldwide — more than 15% of its workforce — and closing four plants in Germany: Volkswagen factories in Hanover, Emden and Zwickau, as well as Audi's Neckarsulm plant.
According to Reuters, citing unnamed company sources, these measures were rejected by the supervisory board on Thursday, which includes labour representatives and representatives of the state of Lower Saxony. The committee voted against management's proposed restructuring by 12 to seven, after opposition from labour representatives.
