VW CEO Oliver Blume appears to have failed to pass his proposed savings plan in the company’s Supervisory Board. According to reports cited by the “Süddeutsche Zeitung” drawing on corporate circles, the VW Management Board’s proposal was rejected during the meeting on Thursday. The opposition came from the state of Niedersachsen and the employee representatives, resulting in the vote being defeated 7 to 12. The VW Group declined to comment on the matter initially.
Insiders described the situation as highly tense. While all involved parties acknowledge that sweeping changes are necessary, corporate sources stated that the savings plan-the so-called “Group Target Picture”-was too vague in too many areas, meaning a unanimous vote in favor would have been reckless. Specifically, there were insufficient details regarding the implementability of the Management Board’s plans.
A source familiar with the situation commented on Blume, saying he now faces a major problem. The insider suggested that although he began strongly, his movement has stalled, leaving the eventual outcome uncertain.
Meanwhile, the state of Niedersachsen had put forward an alternative suggestion, which would have allowed the Supervisory Board to demonstrate its capacity for action and issue a joint statement. However, this proposal was rejected by the other shareholder representatives.
