Berlin, Germany – The German state of Saxony is considering an unprecedented move to acquire a direct stake in Volkswagen. This comes as the automaker prepares to cut tens of thousands of jobs as part of a restructuring plan extending to 2030. The initiative is backed by the state’s Green Party. The move aims to protect jobs and strengthen local influence within the company.
According to Euronews, Green Party politician Wolfram Günther proposed that Saxony purchase a 1% stake in Volkswagen, similar to the model already in place in Lower Saxony.
Günther stated that this stake, estimated at around half a billion euros, could be acquired gradually. This would grant the state a seat on the supervisory board.
Volkswagen Saxony employs more than 11,000 workers at its plants in Zwickau, Chemnitz, and Dresden. It forms a pivotal part of the regional economy, given its extensive network of local suppliers. The state fears significant economic repercussions from the implementation of the cost-cutting plan. This plan will clearly affect its plants, especially after the announcement of the relocation of production for two key series from Zwickau to Wolfsburg.
Günther confirms that the Greens are using their influence in the state parliament to push this agenda, given the government’s reliance on their votes to pass the budget. He added that he is in talks with various stakeholders, from chambers of industry and commerce to the state government, to secure support for the move.
This initiative comes as Saxony focuses on strengthening its position as a leading industrial hub for electric mobility and climate technologies, following the Volkswagen plant in Zwickau becoming the group’s first facility to fully convert to electric vehicle production.
The state of Lower Saxony owns 11.8% of Volkswagen’s shares and 20% of its voting rights. This is based on special legislation known as the Federal Volkswagen Act, which has historically granted Lower Saxony a de facto veto over key company decisions.
Local reports warn that the loss of thousands of jobs could lead to increased support for the Alternative for Germany (AfD) party. The AfD enjoys considerable popularity in Saxony, fueled by concerns about declining living standards and industrial decline in eastern Germany.
