Lower Saxony's VW Supervisory Board Member Hamburg Rejects Plant Closures as Future Strategy

Hamburg sees the real lever for cost reductions elsewhere. "Da liegt doch der eigentliche Hebel, auch wirklich Kosten zu senken." Due to its group structure, VW has considerable potential to simplify processes, dismantle duplicate structures, and improve cooperation between the brands. The state government in Lower Saxony, which holds 20 percent of the voting rights in the VW Group, is, according to its own statements, supporting employees during this phase.

Hamburg's Counter-Proposal: Simplify Processes, Dismantle Duplicate Structures

At the same time, Hamburg acknowledged that the group must change. "Im Gegenteil: Volkswagen muss sich verändern," said the Green Party politician. The decisive factor, however, is above all that the group once again convinces with innovative products. "Diese Stärke muss Volkswagen konsequenter nutzen," said Hamburg and also called for more innovation: "Entscheidend ist aber vor allem, dass der Konzern wieder mit innovativen Produkten überzeugt." This was precisely where Volkswagen's greatest successes had always come from.

Against the backdrop of the ongoing debate, Hamburg warned of growing uncertainty at the locations. "Natürlich sorgt die öffentliche Debatte gerade für massive Verunsicherung an den Standorten," she said. "Uns ist es ein Anliegen, dieser Verunsicherung zu begegnen, diese ernst zu nehmen, ins Gespräch zu gehen und auch Sorgen auszuräumen." She announced that the Board of Management should now present structured, reviewed, and effective solutions.

Collective Agreement Excludes Compulsory Redundancies Until 2030

Hamburg, by contrast, does not see a short-term effect from possible plant closures. "Werksschließungen wirken, wenn überhaupt, frühestens 2030." Until then, according to Hamburg, the collective agreement concluded in December 2024 between IG Metall and Volkswagen applies, which excludes compulsory redundancies at the German locations until 2030. Closures alone are therefore not the answer: "Das ist nicht die Antwort auf die akute Krise, die wir jetzt gerade haben," she said.

With a view to the state's industrial substance, Hamburg also issued a clear warning. "Wenn eine Industrie einmal verloren gegangen ist, kommt sie nicht so schnell wieder," warned the Deputy Minister-President. VW must continue investing in future technologies, from modern drive technology to software to digitalization and artificial intelligence.

Background: Reports of Intensified Cost-Cutting Course at VW

For background: "Manager Magazin" had previously reported that the VW Group intends to significantly intensify its cost-cutting course. According to this, up to 100,000 jobs worldwide could be cut – twice as many as previously planned – and four plants could be at risk. Hamburg reaffirmed the state's position to the dpa: "Das kann nicht unser Interesse sein, weder von Volkswagen als Konzern noch von uns als Land Niedersachsen."

The state government in Hanover and the workforce at locations such as Emden, Zwickau, and Hanover are observing the developments with great attention. Hamburg appealed to the Board of Management to back up the ongoing deliberations with clear, implementable concepts rather than fueling further uncertainty through speculation about plant closures. The conflict between the group headquarters, the state, and the employees' side over the right course in the crisis is therefore likely to pick up further speed in the coming weeks.