Volkswagen Board Rejects CEO Restructuring Plan in 12-7 Vote

Volkswagen's supervisory board voted 12-7 against CEO Oliver Blume's restructuring proposal during a meeting on July 9, 2026, Forbes reported. The plan had sought to eliminate 100,000 jobs and close plants in Hanover, Zwickau, Emden and Neckarsulm. The board approved a simplified model lineup and a cut in global annual production capacity by one million vehicles to nine million.

Volkswagen's second-quarter deliveries fell 8.6 percent, the steepest decline in four years. The company's stock closed at 72.85 euros on July 10 and stands 33 percent below its level at the start of the year. Chinese brands hold almost 10 percent of the European auto market, with AlixPartners forecasting a rise to 16 percent by 2030.

Blume said the group would become the most attractive automotive company in the world by 2030 through iconic brands, inspiring products and robust financial results. The 20-seat board, with unions holding half the seats alongside representatives from the Porsche and Piëch families, Qatar and Lower Saxony, blocked the job and plant measures.

Jefferies reported no indication of progress on plant closures, a five-year investment plan or additional headcount reductions.

Bernstein described the plan as long on ideals but very short on specifics. The works council demanded clarity by the end of July 10 amid IG Metall protests. Toyota produces 28 cars per employee compared with Volkswagen's 13.

The European market remains nearly 4 million vehicles below its pre-COVID high. Professor Ferdinand Dudenhoeffer said Porsche and Audi are the problem brands while Škoda is highly profitable. Joern Buss said employee numbers are not the root cause of competitiveness and that Toyota and Volkswagen face different strategic challenges.