Volkswagen is currently standing at a critical crossroads, facing immense pressure to overhaul its business model in the face of rising costs, stiff competition from China, and looming international trade tariffs. CEO Oliver Blume is set to meet with the company’s supervisory board in Wolfsburg, where he must navigate a delicate power struggle between the influential owner families and a powerful labor faction. With the company’s market value having suffered significantly, management is pushing for a drastic restructuring that could include closing four German manufacturing sites and potentially doubling job cuts to 100,000 to combat shrinking production capacity.

The proposal has ignited fierce backlash, with union leaders at IG Metall mobilizing protests across two dozen facilities to demand the protection of German jobs and domestic production. The company maintains that streamlining its structure and reducing excess capacity are essential steps to navigate a volatile global market, even as internal data suggests that plant utilization will continue to decline over the coming years. As the board prepares for these high-stakes negotiations, the outcome will not only determine the immediate future of iconic brands like Audi and Porsche but will also set a precedent for how Europe’s largest automaker balances fiscal survival with its deep-rooted labor commitments.