Union Supermajority on VW Board Blocks Half of Planned Plant Closures

Volkswagen's proposal to shutter four German factories faces an unexpected structural barrier: the 1960s Volkswagen Act requires two-thirds supervisory board approval for certain closures. With labor holding 10 of 19 filled seats, unions now command an outright majority. Hanover and Emden closures are effectively blocked. Only Zwickau and Neckarsulm, outside the Act's scope, can proceed unilaterally. This governance quirk transforms management's plan into a negotiation.