How State Ownership Gave Lower Saxony a Veto Over VW's Factory Closures

Volkswagen's supervisory board blocked CEO Oliver Blume's plan to close four German plants on July 13, 2026—but approved 50,000 job cuts to proceed. Lower Saxony's board seats enabled the state to block closures while permitting layoffs, a power stemming from VW's partial state ownership. Labor unions and regional officials retain leverage in ongoing negotiations, leaving restructuring's scope uncertain.