Volkswagen labor representatives blocked a sweeping restructuring plan proposed by CEO Oliver Blume. The overhaul aimed to address declining sales and the industry-wide transition to electric vehicles.
Management’s proposals for deeper cost and job cuts met resistance during a tense supervisory board meeting. Volkswagen subsequently stated that current savings plans are insufficient to counter a worsening economic and competitive landscape.
The company's stock declined on the Frankfurt Stock Exchange following the news. Analysts highlighted the failure to reach an agreement as a major obstacle to the CEO’s turnaround strategy.