Volkswagen CEO Oliver Blume is facing renewed resistance to his restructuring plan ahead of next week’s supervisory board meeting, with labor representatives and state government stakeholders submitting two alternative proposals, Reuters reported Tuesday, citing sources.
The news came after Blume addressed over 10,000 workers at Volkswagen's headquarters in Wolfsburg, the first stop on a tour of German plants this week to win support for a plan involving far-reaching job cuts and possible plant closures, adamantly opposed by staff but supported by the group's owner families.
The CEO gets a second shot at securing the necessary support for his cuts on Sept. 4, after failing to do so at the last supervisory board meeting in July.
This time, labor representatives and major shareholder, Lower Saxony, have drawn up alternative turnaround proposals for the automaker, three people familiar with the matter said, highlighting just how deep the conflict over the scope of Volkswagen's overhaul runs among its stakeholders.
Spokespeople for Volkswagen's supervisory board, the works council and Lower Saxony declined to comment. The contents of the proposals were not clear.
