Currently reading: "The board has failed": Unions vs managers as VW battles for profits

Conflicts in and around the Volkswagen Group have moved into the spotlight

The barely concealed conflicts between the many competing forces acting on the Volkswagen Group – from management, investors and the Porsche/Piëch controlling families to the unions and the German state – have moved centre stage after the automotive giant signalled it urgently needed to cut costs in order to compete in a new era.

The VW Group is considering shutting two German plants as part of a plan to become fitter in the face of increased competition from new players, including those from China.

"The pie has become smaller, and we have more guests at the table," VW Group CEO Oliver Blume told German newspaper Bild am Sonntag at the weekend.

The announcement has sparked fury among the automotive unions, who are deeply embedded within the VW Group.

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