Boardroom Battle at Volkswagen: Supervisory Board Blocks Blume's Restructuring as Shares Slip Toward 52-Week Low

Volkswagen's supervisory board voted 12-9 against a plan to cut over 100,000 jobs and close four German plants, sending shares down 0.78% as CEO Blume faces major setback.

Volkswagen’s supervisory board has thrown a wrench into CEO Oliver Blume’s ambitious cost-cutting drive, rejecting a package that would have eliminated more than 100,000 jobs and shuttered four German factories. The decision sent the carmaker’s preferred shares sliding to €71.22 on Wednesday, a 0.78% drop that left the stock barely 2.9% above its 52-week low of €69.20 struck on July 1.

The board’s 12-9 vote against the so-called “Zukunftsplan” (Future Plan) marks the most serious setback yet for Blume, who has warned that Volkswagen faces a 20% cost disadvantage versus rivals. The package included provisions to cut up to 70,000 positions beyond the 35,000 voluntary departures already agreed for the core VW brand, pushing total potential reductions past 100,000. Four plants – Hannover, Zwickau, Emden and the Audi factory in Neckarsulm – were slated for closure by 2030, while global production capacity would shrink from 12 million to 9 million vehicles annually. The model range was to be halved and trim options slashed by 75%.

The rejection comes as Volkswagen’s financial results underscore the urgency of the turnaround. Global deliveries slipped roughly 9% in the second quarter, with sales in China – the company’s single biggest market – plunging by more than a third. A bright spot emerged in the United States, where Volkswagen of America posted a 24.9% gain, driven by the Tiguan and ID. Buzz. Still, the first-half picture was mixed: the group delivered 4.1 million vehicles worldwide, with orders for all-electric models in Europe climbing more than 50%.

First-quarter results already pointed to strain. Revenue fell 2% to €75.7 billion, operating profit tumbled 14.3% to €2.5 billion, and the operating margin slipped from 3.7% to 3.3%. For the full year, Volkswagen envisions revenue growth of 0–3% on the back of 2025’s €321.9 billion, with an operating margin of 4.0–5.5%. The company plans to publish its half-year report on July 24, which will test whether that guidance can hold.

Against this backdrop, Blume also used the July 15 world premiere of the new all-electric ID. Cross to signal a commitment to the EV strategy. The compact premium model is meant to attract new customers to Volkswagen’s electric lineup, but the launch was overshadowed by the boardroom drama. In a separate move, the company raised prices on combustion-engine models by 1.0–1.2% in Germany to reflect EU7 emissions compliance, while leaving the ID. range untouched. Volkswagen also struck an exclusive deal with Bain Capital to streamline its portfolio, and its CARIAD software unit, together with Robert Bosch, completed a Level-2 driver-assistance system for mass-market rollout.

Technically, Volkswagen’s stock remains deep in bear territory. It trades some 23.8% below its 200-day moving average of €93.50, and the relative strength index stands at 31.9 – a reading that suggests oversold conditions. The annualized 30-day volatility of 34.35% reflects the nervousness surrounding the restructuring fight.

Insiders say Blume is preparing for “maximum escalation” if the board continues to block his plan. One option on the table is an extraordinary shareholder meeting, which could force the issue. The supervisory board is scheduled to reconsider the package in September. Meanwhile, negotiations with labor representatives and the state of Lower Saxony continue, including a possible conversion of the Osnabrück plant to military production. The coming weeks will determine whether Volkswagen’s CEO can salvage his turnaround vision – and whether the stock can find a floor.