Volkswagen's executive board is prepared to escalate its internal conflict over factory closures by putting the matter to shareholders if negotiations fail, according to German outlet Merkur. The report, published Thursday, describes the move as the next step in a growing standoff between management and labor representatives.
The dispute centers on the future of several VW plants, with workers and regional politicians pushing back against possible closures. Merkur reports that the board sees a shareholder vote as a fallback option should talks with the works council reach an impasse. The company has not publicly confirmed the plan.
The situation has drawn attention from multiple German media outlets. Tagesschau notes that the fate of VW's factories is likely to remain uncertain for some time, while Handelsblatt reports that the chairman of VW's supervisory board has invited both sides to discussions. MDR quotes Saxony's state premier as acknowledging "oppressive rumors" about the Zwickau plant but urging calm. An n-tv analysis warns that VW risks being paralyzed by its own governance structure.
The conflict reflects broader pressure on the automaker as it navigates the transition to electric vehicles and rising costs. Plant closures would mark a historic shift for VW, which has long avoided forced layoffs in Germany through collective agreements with its powerful works council.
What to watch next: whether the supervisory board chairman's mediation efforts succeed before any shareholder vote is triggered.
