Volkswagen turnaround plan board showdown

Volkswagen is preparing for a critical supervisory board meeting on September 4 to vote on its largest-ever turnaround plan. Management proposes doubling job cuts, potentially closing factories, and spinning off divisions, but faces opposition from labor representatives and the state of Germany — Lower Saxony, which together hold a majority on the board. If the plan is rejected, management may call an extraordinary shareholder meeting in October, invoking Article 111 of Germany's Stock Corporation Act to lower the voting threshold to 75%, potentially bypassing Germany — Lower Saxony's blocking minority. The company is struggling with U.S. tariffs, falling sales in China, and intensifying competition from Asian rivals. Talks are ongoing, with the executive committee meeting on September 3 to seek compromise on job cuts and factory closures.