Volkswagen's supervisory board unanimously approved a radical restructuring plan involving 50,000 job cuts and ending new vehicle production at four German plants. Chief Executive Oliver Blume secured this hard-fought endorsement, with shares briefly jumping nearly 9 per cent after the deal. Days earlier, marathon union talks had turned acrimonious, with VW even considering bypassing the supervisory board.

The measures bring total headcount reductions since 2024 to over 100,000. UBS estimated restructuring costs up to €7bn, Bank of America forecast up to €10bn. The deal cuts global production capacity by a quarter from 12mn to 9mn vehicles annually.

About half the reduction will come in Europe, the rest in China. No immediate plant closures were agreed, with new models not allocated to Emden, Zwickau, Hanover and Neckarsulm beyond 2031. Lower Saxony's prime minister Olaf Lies suggested cuts should bear plants outside Germany's borders.

Ingo Speich of Deka Asset Management said the deal shows willingness to reform, but implementation remains a momentous challenge.