Lower Saxony Prime Minister Olaf Lies has called on Volkswagen management and the unions to reach an agreement on the automaker's restructuring before the September meeting of the supervisory board, saying all parties are under intense pressure to find a solution in the coming days.

On 4 September, the supervisory board of Europe's largest automaker is set to discuss a turnaround plan that could result in tens of thousands more job cuts, as the automaker faces high tariffs, weaker demand and growing competition from China.

CEO Oliver Blume wants to increase the planned number of layoffs to as many as 50,000 and does not rule out closing plants or spinning off certain divisions. Unions reject the proposals, and Lower Saxony, the company's second-largest shareholder, which holds a blocking minority, also has concerns.

Lies emphasized that Volkswagen bears great economic and social responsibility given the tens of thousands of employees, their families, suppliers and service providers involved. The compromise is expected to focus primarily on the scope of the layoffs and the future of the plants at risk.

(Reuters, bak)