A major conflict looms at Volkswagen. According to reports from the “Handelsblatt,” which cited sources familiar with the developments, an attempted compromise in the dispute over CEO Oliver Blume’s radical austerity plan has failed.
Representatives from the company and the state of Lower Saxony held preliminary negotiations on Monday and Tuesday, seeking a minimal consensus ahead of the Supervisory Board meeting. However, the opposing sides appear to remain firmly entrenched.
No further discussions are planned between now and the Supervisory Board session. This is because the Audi control body will meet on Wednesday to present the possible scope of the austerity measures for the VW subsidiary. On Thursday, the Executive Board of the VW Supervisory Board will meet with key union and employer representatives, before the entire VW Supervisory Board convenes on Friday.
The management team, led by CEO Blume, seems to be preparing for a scenario where shareholders will vote on the austerity package during an extraordinary general meeting. Historically, it is unprecedented in German business history for such a meeting to decide on a restructuring package. An insider from the corporation’s environment told the newspaper, “The trains are now moving towards each other.” Volkswagen did not comment on the request for an interview.
