Oliver Blume's grand plan to resuscitate Volkswagen Group suffered a setback last week at a company board meeting.

Volkswagen CEO Oliver Blume encounters resistance from labour unions and the supervisory board, as proposals for job cuts and plant closures fail to gain approval in Wolfsburg.

Volkswagen CEO Oliver Blume indicated on Sunday that he's trying to avoid closing plants at the German storied automaker, and would still look to turn...