Minister President of Lower Saxony Olaf Lies (SPD) speaks during a press conference after the federal state premiers meeting about exchange and cooperation with the new federal government, at the Chancellery in Berlin, Germany June 18, 2025. REUTERS
BERLIN, Sept 11 (Reuters) – Volkswagen’s overhaul has put the leader of Lower Saxony in a bind: backing deep job cuts in the carmaker’s biggest restructuring in history while trying to fend off the far-right AfD party that is making gains around the country.
The northwestern German state, home to Volkswagen’s HQ and six of its plants, is a key shareholder in the embattled company. It is headed for municipal elections this Sunday, with polls showing the Alternative fuer Deutschland has made inroads.Leading the balancing act is Olaf Lies, premier of Lower Saxony with the state’s co-ruling Social Democratic (SPD) party and a member of Volkswagen’s supervisory board.
At a board meeting last week, Lies dropped his opposition to a restructuring plan that could see well over 100,000 layoffs at the group as it battles a challenge from China and U.S. tariffs. He argued that a no-deal with management could have imperilled the carmaker even more than painful cuts.
